BNP Paribas' Raychaudhuri Sees U.S. Dollar Peaking in 2Q of 2019

The video discusses the implications of the G20 meeting in Buenos Aires, focusing on the ongoing trade conflict and its potential long-term nature. It advises investors to remain cautious and defensive, suggesting high dividend yield plays and avoiding large US exporters to China. The impact of the Federal Reserve's policy on interest rates and the US dollar is analyzed, with predictions of potential rate hikes in 2019. The video concludes with an outlook on US economic growth, anticipating a slowdown in 2019 and 2020, which is not expected to surprise market watchers.

What is the recommended investment strategy in light of the ongoing trade conflict?

• Increase exposure to companies with US dollar debt

• Focus on high dividend yield plays

• Invest heavily in US exporters to China

• Shift investments to emerging markets

Why might investors be advised to remain defensive in their portfolios?

• Owing to the uncertainty in trade and market conditions

• Because of the potential for rapid economic growth

• Due to the resolution of the trade conflict

• As a result of stable interest rates

How might the Federal Reserve's interest rate decisions affect the US dollar?

• The US dollar will remain stable

• The US dollar may peak and then moderate

• The US dollar will appreciate continuously

• The US dollar will depreciate significantly

What is a potential concern if the Federal Reserve pauses its rate hikes?

• It indicates a lack of confidence in the economy

• It suggests inflation is out of control

• It means the US dollar will collapse

• It implies the trade conflict is resolved

What is the expected range for US economic growth in 2019?

• 3% to 3.5%

• 2.5% to 3%

• 1.8% to 2%

• 0.5% to 1%