Risk Assets May Continue to Perform Well, Kapstream Capital Says

The video discusses the increased market volatility and geopolitical risks in 2018, emphasizing the impact of trade wars on economic growth and central bank policies. It predicts a continuation of low interest rates, encouraging risk-taking in financial markets. The economic outlook for 2018 and 2019 is expected to mirror previous years, with risk assets performing well. The video also explores Australia's economic position, highlighting its relationship with China's growth and the Reserve Bank of Australia's interest rate policies.

What is a key concern for investors in the current market environment?

• High inflation rates

• Increased market volatility

• Rising interest rates

• Decreasing geopolitical risks

How are central banks expected to respond to the trade war's impact on growth?

• By increasing interest rates

• By decreasing market liquidity

• By keeping interest rates low

• By encouraging savings

What economic conditions are expected to persist in 2018 and 2019?

• Stagnant growth and high unemployment

• High inflation and high interest rates

• Rapid economic expansion and high inflation

• Low interest rates and strong performance of risk assets

How has the Australian economy benefited from its relationship with China?

• By benefiting from China's high growth rates

• By receiving foreign aid

• Through military alliances

• Through increased tourism

What is the expected stance of the Reserve Bank of Australia regarding interest rates?

• To increase rates significantly

• To fluctuate rates frequently

• To maintain rates at 1.5%

• To decrease rates to zero