Equity Valuations Place Too Much Weight on Consumers: State Street

The video discusses the shift from bonds to equities, highlighting the need for growth in earnings and dividends. It examines the risks in equity markets, particularly in the consumer sector, and the potential for a recession influenced by US-China trade disputes. The video also considers global economic shocks, such as Brexit and tariffs, and their impact on business confidence and markets.

What is a key concern when investing in equities according to the first section?

• High bond yields

• Lack of growth in earnings and dividends

• Strong consumer spending

• Overvaluation of tech stocks

Which sector is mentioned as potentially overvalued in the second section?

• Energy

• Consumer

• Industrials

• Technology

What is driving a lot of the valuations in US equities according to the second section?

• Robust consumer spending

• Tech innovation

• Strong industrial growth

• High energy prices

What is one of the factors that could potentially prevent a recession in 2020?

• Resolution of the US-China trade dispute

• Increase in interest rates

• Decrease in consumer spending

• Collapse of tech stocks

What global event is mentioned as a potential shock to the economy in the third section?

• US elections

• Tech bubble burst

• Brexit

• Oil price surge