Risk-Ward Balance May Become Less Attractive: RBC Wealth

The video discusses market weight strategies, focusing on defensive sector allocation and monitoring US markets for recession indicators. It highlights the yield curve inversion and ISM new orders as cautionary signs. The potential for a market peak is considered, with a focus on risk-reward balance. The impact of the US-China trade war is analyzed, noting the challenges in reaching a comprehensive deal before the 2020 elections.

What are the two recessionary indicators mentioned in the first section?

• Yield curve inversion and ISM new orders minus inventories

• Unemployment rate and GDP growth

• Consumer confidence index and inflation rate

• Stock market volatility and housing starts

How does the yield curve inversion relate to market peaks according to the second section?

• It always predicts a market peak

• It is not a reliable indicator for market peaks

• It suggests a market peak has already happened

• It indicates a market peak will occur immediately

What is the main focus of the second section regarding market participation?

• Increasing investment in emerging markets

• Withdrawing from the market entirely

• Continuing to participate while monitoring risk-reward balance

• Investing heavily in technology stocks

What is the likelihood of a comprehensive trade deal before the 2020 elections as discussed in the third section?

• Highly likely

• Somewhat likely

• Already achieved

• Unlikely

What additional issues complicate the trade negotiations mentioned in the third section?

• Labor laws

• Intellectual property rights and Chinese economic reforms

• Currency exchange rates

• Environmental regulations