2019 Will Be More Difficult for Global Equities, Says Goldman Sachs' Moe

The video discusses the current state of global markets, focusing on the intersection of growth and interest rates, termed as 'growth rate JAWS'. It highlights the challenges faced by equities due to tightening financial conditions and slowing global growth. The discussion extends to the US dollar's strength, US-China trade tensions, and the impact of fiscal stimulus. Predictions for 2019 suggest subdued returns in equity markets due to slowing corporate earnings growth, with a focus on how much of this outlook is already priced into current valuations.

What is the 'growth rate JAWS' concept primarily about?

• The gap between global growth and financial conditions

• The gap between U.S. and European growth rates

• The gap between global growth and inflation rates

• The gap between stock market growth and bond yields

What is expected to happen to U.S. growth as fiscal stimulus wears off?

• It will remain stable

• It will lead to a recession

• It will accelerate significantly

• It will slow down

How is the dollar expected to behave in 2019 according to the transcript?

• It will remain stable

• It will strengthen throughout the year

• It will weaken immediately

• It will remain strong initially but weaken later

What is the anticipated trend for U.S.-China trade relations in 2019?

• Continued escalation of tariffs with potential for a pause

• Immediate resolution of all trade issues

• Complete removal of all tariffs

• No change in current trade policies

What is the expected trend for corporate earnings growth in Asia for 2019?

• It will exceed the consensus

• It will remain the same as consensus

• It will be about half of the consensus

• It will double compared to consensus