This Strategist Says Best Equity Opportunities Lie Outside U.S.

The video discusses the dominance of the tech sector in the US equity rally and the potential for growth in global equities outside the US, particularly in the UK, Europe, and emerging markets. It highlights the role of central banks in keeping interest rates low, affecting earnings yields and valuations. The US economic data shows consumer spending driving growth, with low unemployment and strong retail sales. The US Treasury plans to issue 20-year bonds to manage the deficit. Investment strategies favor equities over bonds, with a focus on positive real yields. The US consumer remains strong, supporting economic growth, while global growth is expected to narrow the gap with the US.

What is one reason the tech sector is seen as a key driver in the US equity rally?

• Tech companies have the lowest market capitalization.

• Tech stocks are the most volatile.

• Tech companies have the highest dividend yields.

• Tech is considered immune to the economic cycle.

Why are central banks' low rates significant for equities?

• They increase the earnings yield.

• They decrease the price-to-earnings ratio.

• They drive up price-to-earnings ratios.

• They make bonds more attractive.

What economic indicator reached a 19-year high due to strong consumer spending?

• Bloomberg's Key Index of Consumer Comfort

• US GDP Growth Rate

• US Unemployment Rate

• US Inflation Rate

What is the US Treasury's plan to manage the deficit?

• Issuing 30-year bonds

• Issuing 5-year bonds

• Issuing 20-year bonds

• Issuing 10-year bonds

What is expected to happen to the growth gap between the US and other developed markets in 2020?

• It will widen significantly.

• It will reverse completely.

• It will remain the same.

• It will narrow.