Can U.S. Equities Repeat 2019's Gains?

The video discusses the US economic outlook for 2020, highlighting a slowdown in consumer spending and modest growth expectations. It examines the impact of the US-China trade deal on exports and business investment, predicting stable but not significant changes. The credit market is analyzed, noting tight spreads and the attractiveness of high yield bonds. The video also explores stock market trends, emphasizing the challenges of replicating 2019's gains due to rich price earnings multiples and a less dramatic fall in bond yields.

What is the expected growth rate for the US economy in 2020 according to the transcript?

• 2.5%

• 1.5%

• 2.0%

• 3.0%

How does the US-China trade deal affect US exports and business investment?

• It has no impact on business investment.

• It provides a modest reversal, stabilizing sentiment.

• It causes a major reversal of previous tariffs.

• It leads to a significant boost in exports.

What is the expected trend for investment grade spreads in a slowing economy?

• Complete reversal

• Widening

• No change

• Further tightening

Why are US high yield bonds considered attractive?

• They are risk-free investments.

• They stand out in a low yield environment.

• They are unaffected by economic slowdowns.

• They have the highest yields globally.

What was a key factor in the US stock market rally in 2019?

• Increase in exports

• Stable consumer spending

• Substantial fall in bond yields

• High earnings growth