Developed-Market Stocks, EM Bonds Favored: StanChart PB

The video discusses the 2020 outlook for equities and bonds, highlighting a preference for developed market equities and emerging market bonds due to a weaker dollar. Concerns about US equity valuations are addressed, with a focus on earnings recovery. The euro area is identified as a top pick, particularly its banks, which are undervalued. Catalysts such as ECB policy changes and a US-China trade truce are expected to unlock value in euro area banks. The video concludes with a discussion on valuation targets for these banks.

Which region is preferred for equity exposure in 2020?

• Emerging markets

• Developed world, led by the euro area

• Latin American markets

• Asian markets

What is the expected earnings recovery percentage for the US in 2020?

• 20%

• 5%

• 10%

• 15%

What is a key factor for US equity markets to perform well in 2021?

• Geopolitical stability

• Earnings growth

• Increased government spending

• Interest rate cuts

What is the current valuation of euro area banks in terms of price to book?

• 1.0 times

• 0.8 times

• 1.2 times

• 0.6-0.7 times

Which event is NOT mentioned as a catalyst for euro area banks?

• Increased share buybacks and dividends

• ECB exempting deposits from negative rates

• Brexit resolution

• US-China trade truce