BNY's Young Says Fed Will 'Get to 3% by Summer of Next Year'

The video discusses the Federal Reserve's interest rate strategy, predicting a rise to 3% by next summer, and its impact on equity markets. It highlights the importance of the Fed's signaling in maintaining market stability and the potential negative effects if the Fed changes its course. The discussion then shifts to the performance of growth versus value stocks, noting that growth stocks have outperformed value stocks significantly. The video concludes with a prediction that this trend may reverse in 2019, influenced by economic cycles and tax reforms.

What interest rate level is expected to start putting pressure on equity markets according to the discussion?

• 1% to 2%

• 2% to 3%

• 3% to 4%

• 4% to 5%

Why is the Federal Reserve's signaling considered important for the market?

• It helps in predicting inflation rates.

• It prevents market volatility by setting clear expectations.

• It determines the value of the US dollar.

• It influences global trade policies.

What has been the trend for growth stocks compared to value stocks recently?

• Value stocks have significantly outperformed growth stocks.

• Growth stocks have underperformed value stocks.

• Growth stocks have outperformed value stocks.

• Both have performed equally well.

What is one reason given for the underperformance of the value trade?

• High interest rates

• Low discounts on earnings

• Strong global demand

• Increased government spending

What is the expected trend for the growth to value trade as we move into 2019?

• Continued dominance of growth stocks

• Stability with no significant changes

• A gradual reversal favoring value stocks

• A quick reversal favoring growth stocks