Citi's Kaiser Sees 'Big Hurdle' to Investing Outside the US

The video discusses the concentration of investments in the US, highlighting the performance of large-cap companies and the influx of international money. It explores the challenges of investing outside the US and the dynamics of interest rates, questioning whether rates are cheap or stocks are expensive. The discussion also covers concerns about the yield curve, particularly the implications of different interest rate scenarios on economic growth and recession risks.

What is one reason for the concentration of investments in the US market?

• Lack of investment opportunities in Europe

• High performance of large-cap companies

• US government incentives

• Low interest rates in the US

Why might US small caps be considered as emerging market exposures?

• They have high volatility

• They are undervalued

• They are not well-regulated

• They offer similar risk profiles

What is the main question regarding US rates and stock prices?

• Are stocks undervalued?

• Are rates too high?

• Is inflation affecting stock prices?

• Are rates cheap or stocks expensive?

What could a 'three handle' on the 10-year yield indicate?

• Strong economic growth

• Increased foreign investment

• Stable inflation

• Rising unemployment

Why is there concern about the 30-year yield dislocating to the upside?

• It suggests strong economic growth

• It could indicate a recession

• It might lead to higher inflation

• It is difficult to justify with positive data