BlackRock Sees No Sign Reflation Trade Is Coming Off

The video discusses the fluctuating sentiment in the equity market, influenced by tax reform optimism. It highlights the stability of the market despite shifts in leadership and explores the distinction between the Trump rally and the global reflation trade. The discussion includes the impact of global growth, PMI data, and the breakdown of correlations, which affects stock picking. The video also examines the support of reflation by growth and inflation surprises, and the trends in corporate spending, emphasizing the need for increased CapEx to sustain market growth.

What is the main factor causing shifts in leadership within the equity market?

• Interest rate changes

• Optimism around tax reform

• Currency fluctuations

• Trade agreements

How does the breakdown of stock correlations affect stock pickers?

• It increases market volatility

• It makes it easier to identify winners and losers

• It has no effect on stock picking

• It makes it harder to pick stocks

What is the VIX primarily used to measure?

• Stock market returns

• Market volatility

• Interest rates

• Economic growth

What are the two main ways companies can spend their money?

• Stock buybacks and dividends

• Mergers and acquisitions

• Research and development

• Marketing and advertising

What is the current trend in corporate spending according to the transcript?

• More spending on capital expenditure

• Increased focus on dividends

• Decrease in overall spending

• Reduction in stock buybacks