Equity Returns Flat for U.S. in 2022: Jefferies's Darby

The video discusses the anticipated market volatility in 2022, driven by changes in the US balance sheet and yield curve dynamics. It predicts flat equity returns for the US, moderate growth in Asia, and strong performance in Europe. The discussion also covers inflation expectations and labor market dynamics, with skepticism about a return to a low inflation regime. The demand for skilled labor is expected to increase, impacting profit shares and maintaining higher inflation rates.

What is expected to be a key theme for US equities in 2022?

• Volatility

• Stable growth

• High inflation

• Declining interest rates

Which region is expected to benefit from the steepening of the yield curve in 2022?

• United States

• Asia

• South America

• Africa

What is the expected performance of European equity markets in 2022?

• Double-digit returns

• Flat returns

• Single-digit returns

• Negative returns

What does Neel Kashkari suggest about the inflation regime post-COVID?

• It will remain high

• It will be controlled by fiscal policy

• It will fluctuate unpredictably

• It will return to low levels

What is the expected trend for labor's share of profits according to the analysis?

• It will decrease

• It will remain stable

• It will increase

• It will be negligible