Pictet's Donay Favors U.S. Equities Over Bonds

The video discusses the Federal Reserve's monetary policy, focusing on market reactions, credit growth, and interest rates. It highlights the Fed's shift to a dovish stance, pausing rate hikes and balance sheet contraction. The discussion also covers asset allocation preferences, favoring equities over bonds due to positive forces like trade war truce and monetary policy stimulation, while acknowledging negative earnings momentum.

What is one of the key considerations for the Federal Reserve in its monetary policy?

• Decreasing exports

• Preserving the wealth effect

• Increasing inflation

• Reducing employment

What is the Federal Reserve's approach to controlling financing costs?

• Expanding the balance sheet

• Increasing interest rates

• Limiting the widening of interest rate spreads

• Reducing credit growth

Why is the Federal Reserve pausing its balance sheet contraction?

• To increase inflation

• To decrease exports

• To stimulate credit growth

• To reduce employment

What is the preferred asset class according to the discussion?

• Bonds

• Equities

• Real estate

• Commodities

What is a potential negative force affecting the market?

• Increasing employment

• Positive earnings momentum

• Negative earnings momentum

• Trade war escalation