DBS Group CIO Says Equities Still Best Asset Class to Be in

The video discusses the sensitivity of financial markets to policies, particularly central bank actions. It highlights the proactive measures by central banks, such as China's fiscal stimulus, and the preference for equities over bonds due to valuation and economic conditions. The bond market dynamics are influenced by dovish central bank policies, leading to negative yields and a bond rally.

What role do central banks play in the context of a potential IMF outlook cut?

• They focus solely on fiscal policy measures.

• They increase interest rates to stabilize the market.

• They become proactive in monetary policy.

• They remain passive and wait for market reactions.

Why are equities preferred over bonds and cash in the current market environment?

• Equities offer higher yields compared to bonds.

• Equities are less volatile than bonds.

• Equities are undervalued in a Goldilocks economy.

• Equities have guaranteed returns.

What economic conditions are described as 'Goldilocks'?

• Slow growth and low inflation

• High growth and low inflation

• Slow growth and high inflation

• High growth and high inflation

What has been a significant factor in the recent bond market rally?

• The Federal Reserve's dovish policy shift

• The Federal Reserve's hawkish policy

• Increased corporate bond issuance

• Rising interest rates globally

What is a notable characteristic of some recent bond issuances?

• They are only issued by the US government.

• They are primarily issued by emerging markets.

• They are oversubscribed and have negative yields.

• They have high positive yields.