TIB's Liu: Still See Good U.S. Growth

The video discusses the current market trends, focusing on the rise of equities and inflation, and the fall of bond yields. It explores the transitory nature of inflation due to supply chain disruptions and closed borders. The discussion includes growth prospects, yield curve analysis, and investment strategies, emphasizing the importance of focusing on companies affected by the pandemic. The video also addresses supply chain challenges and their impact on the global market, predicting improvements as borders open and vaccination rates increase.

Why are investors optimistic about equities despite high inflation?

• They believe inflation is permanent.

• They think inflationary pressures are temporary.

• They expect bond yields to rise.

• They foresee a decrease in global mobility.

What is the bond market currently indicating about growth?

• It reflects a strong growth outlook.

• It shows accurate pricing.

• It suggests a decrease in economic activity.

• It is mispriced and not indicating the right pricing point.

What is the expected impact of the Delta variant on the upcoming earnings season?

• It will have no impact.

• It will boost earnings significantly.

• It will cause some pressure due to disruptions.

• It will lead to a complete market shutdown.

What investment strategy is recommended in the current market environment?

• Avoid all investments until the market stabilizes.

• Adopt a balanced portfolio with a focus on service-oriented companies.

• Invest only in companies unaffected by the pandemic.

• Focus solely on top-down value investing.

How long are supply chain disruptions expected to last?

• They will persist for at least 6 to 8 months.

• They will end as soon as the borders open.

• They will resolve in a few weeks.

• They will never be resolved.