JPM's Aliaga on Market Impact of Geopolitical Events

The video discusses the limited impact of geopolitical events on markets, highlighting that historical events have only caused minor drawdowns in the S&P 500. It explores current market sentiment, noting high stock allocations among households and institutions, and the potential for cash deployment. The video also examines the role of AI in creating market opportunities, emphasizing the infrastructure needed to support AI growth and the broader set of beneficiaries beyond just semiconductor companies.

What is the average drawdown in the S&P 500 caused by major geopolitical events since the 1970s?

• 10.2%

• 5.6%

• 8.4%

• 3.1%

Why might there still be potential for market growth despite high stock allocations?

• Because of a rise in oil prices

• Due to a decrease in interest rates

• Because of a decrease in geopolitical tensions

• Due to a significant amount of cash still on the sidelines

What is the role of interest rates in the current market conditions?

• They increase the cost of borrowing

• They decrease the value of stocks

• They have no impact on the market

• They help in mobilizing cash

What is the estimated cost to build out AI infrastructure according to Bloomberg?

• 2 trillion dollars

• 500 billion dollars

• 750 billion dollars

• 1 trillion dollars

Which sector is expected to see a broader set of beneficiaries due to the AI theme?

• Semiconductor companies only

• Retail companies

• Oil and gas companies

• Companies producing power and electrical equipment