T. Rowe Price: Watch Reflation, Election, Duration, Disruption in 2020

The video discusses the concept of reflation, highlighting economic indicators and market changes. It examines the impact of monetary easing and fiscal stimulus in Japan and Germany, and the potential risks posed by China's slowing economy and US trade tensions. The discussion extends to asset pricing, the trade war's influence, and President Trump's approval ratings. The bond market is analyzed, focusing on duration risk and the Fed's accommodative policy, with insights into inflation and growth outlook.

What is one of the key indicators of the reflation trade mentioned in the first section?

• The increase in oil prices

• The rise in unemployment rates

• The stabilization of PMI

• The decrease in housing prices

What is a major concern for the sustainability of the reflation trade?

• Trade tensions and elections

• Rising interest rates in Europe

• Technological advancements

• Increased consumer spending

How does President Trump's approval rating relate to the trade war?

• Lower ratings increase trade tensions

• Higher ratings decrease trade tensions

• Approval ratings have no impact

• Higher ratings may lead to a trade deal

What does a 1.76% yield on the 10-year US Treasury indicate?

• High inflation expectations

• Accommodative monetary policy

• Strong economic growth

• Rising interest rates

What investment strategy is suggested in the context of the bond market?

• Investing in real estate

• Reducing duration exposure

• Increasing equity exposure

• Focusing on technology stocks