Balance Sheet Normalization and Trade Are Biggest 2019 Risks, Says Invesco's Hooper

The video discusses two primary risks identified in 2018: balance sheet normalization and trade tensions. Balance sheet normalization has been disruptive, especially in emerging markets, as highlighted by the RBI governor. Trade tensions remain unresolved, contributing to market volatility, particularly in December. The IMF downgraded growth expectations for 2019, affecting both China and the US. Companies report increased input costs and disrupted supply chains due to tariffs and geopolitical issues.

What are the two primary risks identified at the start of 2018?

• Interest rates and currency exchange

• Government spending and taxation

• Inflation and unemployment

• Balance sheet normalization and trade

How has balance sheet normalization been described in terms of its impact?

• As a stabilizing factor

• As a potential disruptor

• As a minor concern

• As a growth driver

What is the outlook on trade tensions according to the transcript?

• They will remain unchanged

• They are not a concern

• They are likely to escalate

• They are expected to resolve soon

Which organization downgraded growth expectations for 2019?

• World Bank

• International Monetary Fund (IMF)

• European Central Bank

• United Nations

What impact have tariffs had on companies according to the transcript?

• Improved supply chains

• Enhanced market stability

• Increased input costs

• Reduced production costs