Evestnet's D'Auria on US Markets

What is a common characteristic of market behavior during a recession?

• Markets typically bottom out before a recession starts.

• Markets usually bottom out after a recession has begun.

• Markets peak during a recession.

• Markets remain stable throughout a recession.

Why might investors consider diversifying internationally?

• Valuations abroad can offer better long-term returns.

• International investments guarantee higher returns.

• Domestic markets are always in recession.

• International markets are always less risky.

What is a potential risk when investing in emerging markets?

• Emerging markets are unaffected by global economic changes.

• Emerging markets can be heavily weighted in certain countries like China.

• Emerging markets have no political risks.

• Emerging markets are always stable.

What factor is crucial when considering investments in Japan and China?

• Focusing solely on demographic trends.

• Understanding the macroeconomic and political landscape.

• Investing only in technology companies.

• Ignoring political risks.

How might rising interest rates affect tech and AI-driven investments?

• They make future cash flows more valuable.

• They have no impact on tech investments.

• They increase the attractiveness of distant future cash flows.

• They require discounting future cash flows, affecting valuations.

What is the recommended investment strategy amidst market concentration?

• Avoid diversification.

• Invest only in AI-driven companies.

• Tilt towards value stocks and lower prices.

• Focus solely on high-growth tech stocks.

What is a key consideration when investing in tech and communication sectors?

• Investing only in new tech startups.

• Avoiding any exposure to these sectors.

• Increasing concentration in these sectors.

• Recognizing the existing exposure and not tilting more towards it.