UBS: US Faces Risk Of Later, Deeper Recession

The video discusses the current state of inflation and the Federal Reserve's approach to managing it. It highlights the challenges in achieving the Fed's inflation target and the implications for economic momentum and the labor market. The video also covers asset allocation strategies, particularly the 60/40 portfolio, and the undervaluation of US bonds. Additionally, it examines potential changes in the Bank of Japan's monetary policy and the impact on the Japanese yen. Finally, it advises on maintaining a defensive investment strategy in equities, given the ongoing rate hikes by the Federal Reserve.

What is the Federal Reserve's target for core inflation?

• 4%

• 2%

• 3%

• 1%

Which labor market indicator is considered a leading indicator for inflationary pressure?

• Non-farm payrolls

• Job openings

• Unemployment rate

• Quit rate

What is the current trend in the valuation of the S&P 500 compared to its historical average?

• Unchanged

• Below historical average

• Above historical average

• At historical average

What is the suggested portfolio allocation according to Black Rock in the current market conditions?

• 50% equities, 50% bonds

• 40% equities, 60% bonds

• 60% equities, 40% bonds

• 70% equities, 30% bonds

What is the expected impact of rising oil prices on Japan's inflation?

• No impact

• Decrease inflation

• Increase inflation

• Stabilize inflation

Which sector is considered vulnerable due to ongoing Federal Reserve rate hikes?

• Pharmaceuticals

• Utilities

• Consumer goods

• Technology

What is the potential range for the Japanese yen if the yield curve control strategy is adjusted?

• 125-120

• 100-110

• 110-120

• 120-130