Why Citi Is Looking Outside the U.S. for Yield

The video discusses the current state of corporate earnings, highlighting the newfound pricing power of companies and its implications. It explores the impact of inflation on portfolio positioning and investment strategies, particularly focusing on opportunities outside the US. The discussion also covers fixed income strategies, emphasizing short duration investments and the potential of bank loans in an inflationary environment.

What significant change have corporate CEOs observed in the past decade?

• Decreased consumer demand

• Higher production costs

• Newfound pricing power

• Increased competition

Why is pricing power important in the context of inflation?

• It allows companies to reduce costs

• It increases market competition

• It helps companies maintain profit margins

• It decreases consumer spending

What is a challenge mentioned in finding safe investment options?

• Overvalued equity markets

• High market volatility

• Lack of pricing power

• Limited fixed income options

Which investment strategy is recommended for a rising rate environment?

• Real estate investments

• Long-duration government bonds

• Short-duration investment-grade corporates

• High-risk equities

What type of loans are suggested to perform well in a Goldilocks credit environment?

• Auto loans

• Student loans

• Bank loans and leveraged loans

• Personal loans