Why Cash Isn’t King for UBS's Simon Smiles

The video discusses the Federal Reserve's monetary policy, highlighting the recent dissent among members and the impact of interest rate changes. It explores the role of cash in the current economic environment and suggests investment strategies favoring US and emerging market equities. The discussion also covers global economic risks, including the Fed, China, and US elections, while noting that political risks in Europe, such as Brexit and upcoming elections, are of significant concern.

What was significant about the recent FOMC meeting?

• It marked the end of quantitative easing.

• It was the first time since 1990 with three dissenters against inaction.

• It was the first time interest rates were lowered in a decade.

• It was the first meeting chaired by a new Fed chair.

Why is cash not considered 'king' in the current European market?

• Cash is yielding negative returns.

• Cash is heavily taxed.

• Cash is losing value due to inflation.

• Cash is not accepted in most transactions.

Which investment is considered overweight according to the speaker?

• Japanese bonds

• US equities

• European real estate

• Swiss equities

What are the three risks highlighted by James Gorman for the global economy?

• European elections, US debt, and unemployment

• Oil prices, trade wars, and technology

• Brexit, climate change, and inflation

• China, the Fed, and US elections

How has Brexit impacted the real estate market according to the speaker?

• Significant drop in real estate prices

• Increased availability of high-quality real estate

• Massive increase in real estate demand

• Complete stagnation in the real estate market