Fed Will Not Need to Cut Three Times in 2019: HSBC's Sels

The video discusses the current state of the US equity market, emphasizing the importance of staying invested due to ongoing economic expansion and low earnings expectations. It explores the impact of trade tariffs and Fed rate cuts, noting that the market may be overestimating the need for rate cuts. The rally is driven by a dovish Fed, normalized earnings expectations, and trade deal hopes. Investor behavior, sector preferences, and the relationship between stocks and bonds are analyzed, highlighting the importance of diversification and risk management. The video also examines the impact of currency movements on emerging markets, particularly China.

What is the current expectation for earnings growth in the US equity markets?

• 5%

• 3%

• 10%

• 7%

Which factor is NOT mentioned as a driver of the US market rally?

• Normalized earnings expectations

• Expectations of a quick trade deal

• Dovish Fed policy

• High inflation rates

Which sector is NOT highlighted as a preferred investment in the US?

• Telecom

• Consumer Discretionary

• Energy

• Technology

What is the recommended duration for credit investments?

• 10-15 years

• 5-10 years

• 2-5 years

• 1-2 years

What is the expected impact of a strong US dollar on emerging markets?

• Positive impact

• No impact

• Slight headwind

• Significant boost

What is the relationship between stocks and safe haven bonds according to the transcript?

• Positive correlation

• Negative correlation

• Direct correlation

• No correlation

What is the main driver of sentiment for emerging markets?

• US domestic policy

• European economic growth

• China's economic outlook

• Middle East stability