European Equities Should Perform Decently in 2020: Principal Global’s Shah

The video discusses market gains across asset classes in 2019 and expectations for 2020. It highlights the potential for continued gains, albeit not as significant as the previous year, with a focus on regional performance shifts. European stocks are expected to perform well due to central bank liquidity and attractive valuations. The valuation gap between US and European equities may narrow, influenced by US elections and US-China relations. The video also addresses market stability, risks, and the role of central bank liquidity in supporting risk assets.

What is the expected performance of emerging markets in Europe compared to the US in 2020?

• Emerging markets in Europe are expected to perform the same as the US.

• Emerging markets in Europe are expected to outperform the US.

• Emerging markets in Europe are not expected to show any significant performance.

• Emerging markets in Europe are expected to underperform the US.

What was a major factor driving equity markets in 2019?

• Increased consumer spending

• Central bank accommodation

• Decreased government spending

• Rising interest rates

What is the expected trend for the valuation gap between US and European equities?

• The gap is expected to widen significantly.

• The gap is expected to remain the same.

• The gap is expected to close a little bit.

• The gap is expected to reverse completely.

What is a potential risk factor for US equities in 2020?

• US elections

• European fiscal policy

• Emerging market growth

• Central bank liquidity

What is a key reason for investors to remain fully invested in 2020?

• Decreasing stock valuations

• Central bank liquidity

• High interest rates

• Expectation of a recession