Don’t Chase Equity Markets, Pain Trade Is up, Not Down: UBS’s Baweja

The video discusses the implications of a better-than-expected US jobs report, highlighting sector-specific gains in leisure and hospitality. It examines the potential for a prolonged labor market recovery due to automation and contact-intensive services. The video also explores global inflation concerns, particularly in China, and the impact of oil prices and public debt. Finally, it addresses market trends, risks, and the potential for overvaluation in equity markets, emphasizing the role of fear of missing out.

What sector contributed significantly to the gains in the U.S. jobs report?

• Leisure and Hospitality

• Healthcare

• Manufacturing

• Technology

What is a key factor that investors should not worry about despite rising base money and public debt?

• Deflation

• Inflation

• Unemployment

• Interest Rates

Which of the following is NOT a factor needed for inflation expectations to pick up significantly?

• A weaker dollar

• A stronger dollar

• Increased velocity of money

• Higher commodity prices

What is a major reason for the current overextension in the equity markets?

• Government intervention

• Strong economic fundamentals

• Retail investment and fear of missing out

• High interest rates

Which sectors have helped the S&P perform better than most other markets during the crisis?

• Real Estate and Construction

• Retail and Consumer Goods

• Technology and Communication Services

• Energy and Utilities