Morning Meeting: VIX and the Trump Reflation Trade

Savita Subramanian from Bank of America Merrill Lynch discusses the market's reaction to Trump's presidency, focusing on fiscal stimulus and tax reform. She highlights the potential risks and rewards for different sectors, emphasizing the importance of discerning good policies from bad. Savita also explores investment opportunities in financials and small caps, while discussing the significance of ESG investing, especially for millennials.

What is one reason Savita Subramanian is not as optimistic about equities?

• High valuations and low complacency measures

• Low valuations and high complacency measures

• High interest rates

• Strong economic growth

Which sector has seen massive multiple expansion due to fiscal stimulus?

• Utilities

• Technology

• Raw materials

• Healthcare

What is a potential benefit of tax reform according to Savita?

• Benefits for domestic industries

• Reduced consumer spending

• Higher corporate tax rates

• Increased import tariffs

What shift in market mentality does Savita mention?

• From a 'Fed put' to a 'Trump put'

• From a 'Trump put' to a 'Fed put'

• From a 'market put' to a 'Fed put'

• From a 'Fed put' to a 'market put'

What is one factor that could negatively impact the equity market?

• Trade wars

• Tax cuts

• Increased consumer spending

• Infrastructure development

Why does Savita believe ESG investing is important?

• It is no longer relevant

• Millennials prioritize values-based investing

• It has no impact on company performance

• It is a short-term trend

What percentage of millennials are interested in values-based investing according to a survey?

• 90%

• 70%

• 50%

• 30%