Citi’s Bailin: Reduce Cash, Pile Into Cyclicals Poised for Recovery

The video discusses the current market conditions, highlighting the bifurcation between defensive and cyclical stocks. It advises investors to focus on value and reposition portfolios towards equities and gold due to lower returns on bonds. The reset of actuarial assumptions indicates a shift in economic expectations, with a focus on growth in emerging markets. The video also addresses anticipated market volatility due to the pandemic, predicting a recovery in economic activities and significant growth in the coming years.

What are the two groups into which the market is divided?

• Domestic and international stocks

• Growth and value stocks

• Large and small-cap stocks

• Defensive and cyclical stocks

What is the expected long-term return for equities according to Citi Private Bank?

• 6%

• 12%

• 3%

• 9%

Why are investors encouraged to shift from bonds to equities and gold?

• Bonds are expected to yield higher returns

• Equities and gold offer better returns over the next decade

• Bonds are more volatile

• Gold prices are expected to fall

What is the predicted global growth rate for 2021 and 2022?

• 3.5%

• 2.5%

• 4.5%

• 1.5%

What factor is expected to significantly impact market volatility in the near term?

• Political elections

• Technological advancements

• Interest rate changes

• Virus-related news