Equity Markets Can Go Higher: Eastspring Investment’s Gupta

The video discusses the potential impact of a capital gains tax increase on equity markets, noting that while it may cause short-term consolidation, the medium-term outlook remains bullish. Despite stretched valuations, global equities are supported by strong earnings recovery and economic data. The video also compares US equities with emerging markets, highlighting the need for stability in vaccine rollouts and improved earnings growth in EM. China's market is analyzed in terms of policy impacts, while potential market risks such as reinfection and US Treasury yield trends are also discussed.

What is the main reason for the uncertainty surrounding the capital gains tax rate?

• The tax rate is too low.

• It needs approval from the Senate.

• The tax rate is already finalized.

• The tax rate is too high.

Why does the speaker remain bullish on global equities despite stretched valuations?

• Due to a decrease in household savings.

• Due to a lack of economic data.

• Because valuations are not important.

• Because of earnings recovery and economic improvements.

What is needed to change the dynamic in emerging markets equities?

• Higher inflation rates.

• Stability in vaccine rollout and improved earnings revision ratios.

• Increased government spending.

• Lower interest rates.

What is the current situation of the Chinese market according to the speaker?

• It is unaffected by global trends.

• It is highly attractive from a relative perspective.

• It is range-bound and not very attractive relatively.

• It is experiencing rapid growth.

What is considered a potential blind spot for the markets?

• Low interest rates.

• High inflation rates.

• Strong economic growth.

• Reinfection and vaccine efficacy issues.

What is the speaker's view on the recent pause in US Treasury yields?

• It suggests a decrease in inflation expectations.

• It is a temporary pause.

• It is a significant pullback.

• It indicates a long-term trend.

What is the Federal Reserve's stance on QE and short-term rates?

• They plan to remove QE soon.

• They are likely to increase short-term rates.

• They are unlikely to change QE or short-term rates soon.

• They have already increased short-term rates.