Fed Will Have to Cut Rates This Year, Zuma's Spath Says

The video discusses the Federal Reserve's significant influence on the market, predicting that the Fed may cut rates this year, a view not widely held yet. This potential rate cut could lead to a weaker dollar and strengthen international stocks, which have lagged behind domestic stocks. The video suggests that most investors are underweight in international stocks and may miss out on potential outperformance and diversification benefits.

What is the current belief about the Fed's action on interest rates this year?

• The Fed will increase rates.

• The Fed will cut rates.

• The Fed will maintain current rates.

• The Fed will eliminate rates.

How might a weaker dollar affect international stocks?

• It will have no effect.

• It will weaken international stocks.

• It will strengthen international stocks.

• It will cause international stocks to crash.

Why have international stocks lagged behind domestic stocks?

• Because of a long-term trend of underperformance.

• Due to lack of investor interest.

• Because of higher international interest rates.

• Due to stronger domestic economic policies.

What is a potential consequence for investors who are underweight in international stocks?

• They will avoid currency risks.

• They will have better diversification.

• They will benefit from domestic stock performance.

• They might miss out on international outperformance.

What benefit can come from diversifying into international stocks?

• Increased domestic market exposure.

• Higher risk with no return.

• Guaranteed returns.

• Potential for outperformance and diversification.