Market Rally Can Continue, AB Bernstein Says

The transcript discusses the impact of market valuations and the importance of portfolio quality, especially in light of the 2019 market rally driven by sentiment rather than earnings. It examines the potential short-term impact of a virus on the global economy, particularly China's GDP, and the role of stimulus packages. The discussion also covers US stock valuations, the importance of a global investment strategy, and the influence of liquidity on market sentiment, highlighting the role of central banks like the Fed and PBOC in supporting markets.

What was a significant driver of the market rally in 2019?

• Earnings growth

• Sentiment and multiple expansion

• Interest rate hikes

• Government stimulus

How is the Chinese government planning to achieve its GDP goal despite the virus impact?

• By reducing exports

• By cutting public spending

• By implementing large stimulus packages

• By increasing taxes

What percentage of a global equity portfolio is typically allocated to U.S. equities according to the discussion?

• 70-80%

• 60-70%

• 50-60%

• 30-40%

What has been a major factor supporting market sentiment globally?

• High inflation rates

• Abundant liquidity

• Decreasing consumer confidence

• Rising unemployment

What was the top concern for most people going into 2020?

• Liquidity crunch

• High inflation

• Trade wars

• Rising interest rates