JPMorgan Strategist Bell Sees U.S., European Equities Moving Higher

The video discusses the correlation between US and European stock markets, highlighting that both are expected to rise together due to healthy economic indicators. The UK stock market is approached with caution due to political uncertainties, despite potential improvements in real wages. Earnings seasons in the US and Eurozone show strong growth, with significant earnings upgrades compressing PE ratios. The impact of bond yields on equity markets is analyzed, noting that historically, a 4% yield is needed to affect equities negatively. Current focus is on base rates, with US interest rates expected to remain healthy until they exceed 3%.

What is the expected relationship between U.S. and European stock markets according to the transcript?

• They are expected to move in opposite directions.

• European stocks will always outperform U.S. stocks.

• They are expected to move together.

• U.S. stocks will always outperform European stocks.

Why is there a neutral stance towards UK stocks?

• Because of strong economic growth.

• Because of political uncertainties.

• Due to high inflation rates.

• Due to high dividend yields.

What has been the impact of the tax bill on U.S. earnings?

• It has resulted in significant earnings upgrades.

• It has caused earnings to stagnate.

• It has had no impact on earnings.

• It has led to a decrease in earnings.

What is the expected earnings growth for the Eurozone in 2018?

• 8-10%

• 5-7%

• 11-13%

• 2-4%

At what yield level do bond yields start to negatively impact equities?

• 5%

• 2%

• 3%

• 4%