Equity Returns May Be Lower in Next 12 Months: JPMorgan AM's Craig

The video discusses the current market momentum and economic outlook, highlighting the limited upside potential for earnings. It emphasizes the cautious stance of central banks and the uncertain earnings outlook for 2020. The video advises caution due to elevated market expectations and trade deal uncertainties. It suggests investment strategies focusing on building portfolio protection and maintaining quality in both equity and fixed income spaces, given the potential for a volatile market environment in the coming year.

What is the current stance of central banks regarding interest rates?

• They are undecided about rate changes.

• They are increasing rates.

• They are pausing rate cuts.

• They are aggressively cutting rates.

Why is it difficult to expect a repeat of strong market returns in 2020?

• Due to a decrease in global trade.

• Because of new government regulations.

• Due to the high starting point of the year.

• Because of a lack of investor interest.

What is the suggested approach towards trade deals according to the transcript?

• Ignore trade deals completely.

• Invest heavily in trade-related stocks.

• Hedge against the worst possible outcome.

• Expect the best possible outcome.

What should investors focus on to achieve better returns?

• Avoiding fixed income investments.

• Relying solely on equity investments.

• Building portfolio protection and focusing on quality.

• Investing in high-risk stocks.

What is the expected environment for equity returns in the next 12 months?

• Lower than the last 12 months.

• Unpredictable and volatile.

• Higher than the last 12 months.

• The same as the last 12 months.