State Street's Kassam Favors U.S. Equities, EM Debt

The video discusses the current state of global equities, highlighting the impact of trade tensions and the political dynamics between the US and China. It explores the potential of emerging market debt, influenced by the Fed's policies and the US dollar's performance. The discussion shifts to the preference for US equities, particularly large cap stocks, due to fiscal stimulus and international exposure. The video also covers fixed income strategies, noting the limited movement in yields and the role of cash as a strategic asset. The outlook for the Fed's policy is considered, with potential rate hikes contingent on trade resolution and economic indicators.

What is the main factor affecting global markets this year according to the discussion?

• Global trade tensions

• Interest rates

• Technological advancements

• Oil prices

What is the primary reason for adding to emerging market debt?

• Federal Reserve's policy

• Technological advancements

• Rising oil prices

• Trade tensions

Why is the US dollar expected to be stable in 2019?

• Strong economic growth

• Federal Reserve's rate hike assumptions

• High inflation rates

• Increased trade tensions

Why are large-cap stocks favored over small-cap stocks?

• Lower risk

• Better fiscal policies

• More international exposure

• Higher domestic focus

What is the expected impact of the dollar's strength on US corporates in 2019?

• Decreased exports

• Increased profits

• Minimal concern

• Significant concern

What is the outlook for long-duration bonds according to the discussion?

• No demand

• Decreasing demand

• Stable demand

• Increasing demand

Under what condition might the Federal Reserve consider a rate hike later in the year?

• Successful trade talks resolution

• Rising inflation

• Decreasing unemployment

• Increasing oil prices