Schroders's Davidson Sees Another Year of High Volatility for U.S. Equities

The video discusses the US equity market outlook for 2019, predicting high volatility and low returns. It highlights investment opportunities in undervalued stocks with strong business models and cautions against sectors with high debt levels, like telecoms, due to pricing challenges and competition.

What is the expected market condition for US equities in 2019?

• Low volatility with high returns

• High returns with low volatility

• High volatility with low returns

• Stable returns with moderate volatility

What type of stocks are considered attractive in a high volatility environment?

• Stocks with high short-term gains

• Overvalued stocks with short-term potential

• Undervalued stocks with long-term potential

• Stocks with high debt levels

Which characteristic is important for companies to have in a rising interest rate environment?

• Low competition

• Pricing power

• Weak business models

• High debt levels

Why is the telecom sector considered challenging for investment?

• Low sunk costs and high returns

• Low competition and high pricing power

• High competition and low pricing power

• Stable costs and high consumer demand

What is a key risk factor for companies in a high-cost environment?

• Low sunk costs

• Ability to raise prices

• High debt levels

• Strong balance sheets