UBS' Lovell on Global Markets

The video discusses the current economic landscape, focusing on inflation and the Federal Reserve's approach to interest rate hikes. It predicts a series of 25 basis point increases and analyzes the impact on markets, particularly the S&P 500. The tech sector's challenges are highlighted, with a focus on valuation and growth prospects. The video concludes with a discussion on inflation hedges, emphasizing commodities and energy as favorable options.

What is the expected terminal rate after the FOMC meetings in March, May, and June?

• 6.0%

• 5.5%

• 5.0%

• 4.5%

Why does the speaker believe the equity market's strength is unsustainable?

• Because of low bond yields

• Owing to strong corporate earnings

• Because of high inflation and rising interest rates

• Due to a lack of economic growth

What is the revised S&P 500 forecast for the end of the year?

• 3800

• 4200

• 4000

• 3600

What is the current growth expectation for the tech industry's earnings?

• 10%

• 1%

• 3%

• 5%

Which commodity is highlighted as a good inflation hedge?

• Gold

• Brent oil

• Silver

• Natural gas