Remain Defensive at the Start of 2023, T. Rowe Price Says

The video discusses current market conditions, focusing on earnings forecasts and valuations in the US and Europe. It highlights China's economic recovery post-COVID, suggesting investment opportunities in Asian markets. The discussion also covers the US dollar's outlook, interest rate differentials, and the potential impact of a recession. Finally, it provides insights into fixed income investments, emphasizing the return of yields and the quality of issuers in the bond market.

What are the two main factors that need to change before taking more risks in the market?

• Government policies and trade agreements

• Interest rates and inflation

• Earnings forecasts and valuations

• Consumer confidence and spending

What is the current status of the China pivot according to the transcript?

• It is just beginning

• It is already ongoing

• It is unlikely to happen

• It has been completed

Which markets are expected to benefit from the China pivot?

• Middle Eastern markets

• European markets

• North American markets

• Asian markets including Hong Kong, Singapore, and Thailand

What is a key characteristic of the Chinese market that investors should be aware of?

• It is heavily influenced by retail participants

• It is stable and predictable

• It is driven by institutional investors

• It is primarily export-driven

What is the expected trend for the US dollar in 2023?

• It will remain stable

• It will fluctuate unpredictably

• It will strengthen significantly

• It is likely to weaken

Why are bonds considered attractive again according to the transcript?

• Because of negative yields

• Due to government intervention

• Due to high inflation

• Because yields are back

What is the forecasted default rate for US high yield bonds next year?

• 10%

• 3%

• 5%

• 7%