JPM's Lebovitz Sees Inflation, Earnings Driving Equities

The video discusses the potential impact of the Trump administration's policies on inflation, predicting a gradual increase in 2017. It explores the relationship between interest rates and equities, suggesting that moderate inflation and earnings growth could support market returns. The video also compares US and international markets, highlighting the challenges and opportunities for investors, particularly in light of currency effects and different economic cycles.

What is one potential effect of the Trump administration's policies on the economy?

• Increase in supply

• Decrease in commodity prices

• Decrease in inflation

• Increase in demand leading to higher inflation

How does the correlation between interest rates and equities behave when rates are low and rising?

• Negative correlation

• Inverse correlation

• No correlation

• Positive correlation

What is the expected market performance if inflation remains between 0% and 4%?

• Mid to single-digit returns

• High double-digit returns

• Negative returns

• No returns

What is a challenge for U.S. investors seeking returns outside the U.S.?

• Currency translation effects

• Higher taxes

• Lack of investment opportunities

• Lower interest rates

Why might investors need to be patient with international opportunities?

• Due to lack of growth in emerging markets

• Because Europe is earlier in its business cycle

• Because of the current U.S. economic cycle

• Due to immediate high returns