Goldman Sachs's Kostin on U.S. Equities, Trends, Asset Allocation

The video discusses the global economic outlook, focusing on the U.S. market's performance and the impact of geopolitical uncertainties. It highlights corporate earnings, buybacks, and cash flow management, emphasizing the software sector's resilience. The discussion covers market valuations, the trade war's potential effects, and consumer confidence. Finally, it outlines strategies for equity allocation and market forecasts, suggesting a cautious yet optimistic approach to investment.

What is the expected nominal GDP growth in the United States for 2019?

• 3.2%

• 4.5%

• 2.5%

• 6%

How are most share buybacks funded according to the transcript?

• Through raising capital in the markets

• By reducing dividends

• By taking on more debt

• From the company's cash flow

Which sector is highlighted for its low sensitivity to economic activity?

• Automobile

• Software

• Retail

• Energy

What is the current yield of the 10-year U.S. Treasury as mentioned in the transcript?

• 2.7%

• 3.5%

• 4.0%

• 1.5%

What percentage of U.S. corporate revenues are domestic?

• 80%

• 50%

• 60%

• 70%

What is the recommended strategy for asset allocation according to the transcript?

• Decrease equity exposure

• Increase cash holdings

• Increase bond holdings

• Invest in foreign markets

What is considered a 'known unknown' that could impact market valuations?

• Trade disputes

• Interest rate hikes

• Corporate tax changes

• Technological advancements