Series of Fed Rate Hikes to Support Dollar in 2019, JPMorgan's Sullivan Says

The video discusses the market's response to the US midterm elections, highlighting a significant reduction in hedge fund exposure to the US market. It examines the economic growth outlook for 2019, noting the absence of tax cuts and limited infrastructure spending due to deficit concerns. The potential impact of legislative gridlock and areas of bipartisan agreement, such as infrastructure and pharmaceutical pricing, are explored. The video also projects US dollar strength and interest rate hikes through 2019, with a focus on the implications of a potential recession.

What was the significant change in hedge fund exposure to the US market before the midterm elections?

• It fluctuated between 30% and 70%

• It remained constant at 50%

• It decreased from 95% to 15%

• It increased from 15% to 95%

How do investors generally view a divided government in terms of market impact?

• Positively, as it often benefits markets

• Negatively, as it causes market crashes

• Negatively, as it leads to uncertainty

• Indifferently, as it has no impact

What is one area where bipartisan cooperation might occur despite political gridlock?

• Education funding

• Immigration policy

• Infrastructure investments

• Healthcare reform

What is the primary driver of currency strength according to the video?

• Political stability

• Interest rates and growth differentials

• Trade agreements

• Stock market performance

What is the likelihood of a US recession on a 2-year forward basis as mentioned in the video?

• Greater than 60%

• Between 20% and 40%

• Exactly 50%

• Less than 20%