Deutsche Bank’s Huynh Recommends Clients Take Profits in Chinese Markets

The video discusses the current market trends, highlighting the uncertainty in equity markets, particularly those related to China. It advises taking profits due to increased risks of a non-trade deal. The impact on China-exposed stocks is analyzed, showing a decline compared to the MSSI World Index. The discussion also covers recession warnings, suggesting it's too early to heed them, as a trade deal between China and the US is still expected. The recession probability is estimated at 25% over the next 12 to 18 months, with a base scenario of slowing GDP growth.

What was the general recommendation given regarding equity markets?

• To invest more in Chinese equities

• To focus on high-risk assets

• To avoid all market investments

• To take profits from the equity markets

Which type of assets are particularly affected by the trade tensions?

• Low-risk bonds

• China-related assets

• European stocks

• Cryptocurrencies

What is the expected timeline for potential clarity on trade deals?

• By the G20 meeting in June

• In the next few days

• By the end of the year

• No specific timeline

What is the current probability of a recession according to the model?

• 75%

• 25%

• 50%

• 10%

What is the base scenario for GDP growth despite the trade tensions?

• Stagnation

• Rapid growth

• Slowing GDP growth

• Recession