Ball Is in China's Court on What to Do Next, Says Hermes' Murray

The transcript discusses the impact of the trade war on US markets, highlighting the potential risks and the inability to ignore escalating tariffs. It explores China's strategies to counterbalance these effects, including economic stimulus and currency devaluation. The conversation shifts to predictions of a recession in 2020 and how it influences investment strategies, particularly in US equities. Despite fears, there is a significant flow of money into US equities, indicating a lack of fear or possible complacency in the market.

What is the potential impact of escalating tariffs on the global economy?

• It will boost global trade.

• It will have no effect on the global economy.

• It will weigh on global trade and harm the global economy.

• It will only affect the U.S. economy.

What are some potential actions China might take in response to the trade war?

• Stimulate their economy and devalue their currency.

• Increase tariffs on U.S. goods.

• Increase their military spending.

• Stop all trade with the U.S.

What is one of the concerns about the flow of money into U.S. equities?

• It suggests a decrease in U.S. market confidence.

• It shows a strong fear of recession.

• It reflects a global economic downturn.

• It indicates a lack of fear and potential complacency.

What is a common prediction about the global economy in 2020?

• A decrease in global trade.

• Stable economic growth.

• A recession is likely to occur.

• A significant economic boom.

How are investors likely to react as a recession approaches?

• They will only invest in non-U.S. markets.

• They will immediately change their investment strategies.

• They will continue investing as usual until the recession is closer.

• They will stop investing altogether.