RBC's Calvasina Sees a Growth Scare, Not a Recession for U.S.

The video discusses the current market dynamics, focusing on the defensive tilt and market valuations. It explores the cyclical versus defensive sectors, highlighting the impact of trade deals and market trends. The discussion extends to the financial sector, examining the effects of yield curve compression and economic outlook. The healthcare sector is analyzed in the context of policy risks, particularly the 2020 election. Finally, the video addresses the trade war's impact on the economy, emphasizing the potential for a growth scare rather than a recession.

What is the current market perception of defensive sectors like utilities?

• They are at peak valuations and should be sold.

• They are cheap and should be bought immediately.

• They are expensive but not at peak valuations.

• They are undervalued and have room to grow.

How do trade deals influence the performance of cyclical and defensive sectors?

• Trade deals have no impact on these sectors.

• Positive trade news benefits defensives more than cyclicals.

• Both sectors are equally affected by trade news.

• Negative trade news benefits defensives more than cyclicals.

What is a significant challenge for financials in the current market?

• Decreasing consumer spending.

• Increasing interest rates.

• Yield curve compression.

• High inflation rates.

Why might healthcare receive a short-term defensive bid?

• It is expected to benefit from trade deals.

• It is undervalued and considered a safe investment.

• It is heavily influenced by bond yields.

• It is overvalued in the large cap space.

What is a potential risk for the market related to the 2020 election?

• A trade war escalation.

• A policy risk.

• A growth scare.

• A recession scare.