JPMorgan: Markets Are Over Aware of Political Risk

The video discusses the valuation differences between Europe and the US, emphasizing political risks and market perceptions. It analyzes opinion polls and election outcomes in various countries, highlighting the impact on markets. The discussion shifts to market outlooks, earnings expectations, and the role of dividends. The video also covers Trump's regulatory changes, their effects on US markets, and debates the Federal Reserve's independence amid political pressures. Finally, it explores market trends and the concept of the Trump trade.

What is the main reason markets are perceived to be overestimating political risks in Europe?

• The stability of the European Union

• The decline in European stock markets

• The economic growth in Europe

• The shock of the UK referendum and US election

What is the expected earnings growth in Europe for the year discussed?

• 5%

• 8%

• 10%

• 12%

What is the starting yield level mentioned in the economic predictions?

• 2%

• 3%

• 5%

• 4%

What regulatory action did President Trump take regarding the Obama fiduciary rule?

• He expanded it

• He halted it

• He ignored it

• He implemented it

What is the concern regarding the Federal Reserve's independence?

• It is increasing interest rates too quickly

• It is being politicized by the administration

• It is not cooperating with the government

• It is being influenced by international bodies