Goldman's Oppenheimer: Deep Profit Recession Not Very Likely

The video discusses the potential impact of interest rate changes on European equities, highlighting expectations for rate hikes and the implications for real rates and equity valuations. It also examines the possibility of an earnings recession, considering factors like strong balance sheets, fiscal policy easing, and labor market strength, which may mitigate the downturn. The discussion remains optimistic about commodity prices and certain market segments.

What is the expected terminal rate for interest rates by June of next year?

• 2%

• 1%

• 2.5%

• 1.5%

What is the likelihood of a deep earnings recession in Europe according to the speaker?

• Very likely

• Somewhat likely

• Certain

• Unlikely

Which sector is mentioned as having strong balance sheets?

• Technology

• Household

• Energy

• Retail

What is the speaker's outlook on commodity prices?

• Bullish

• Neutral

• Uncertain

• Bearish

What is one factor that could limit the extent of an economic downturn?

• Weak labor markets

• Strong fiscal policy

• High inflation

• Low commodity prices