Fed Is Changing Its Trajectory, Chanana Says

The video discusses anticipated market adjustments leading into 2025, driven by factors such as the Fed's easing cycle, AI mega trends, and the impact of the US election and Trump's victory. It highlights the potential for continued market volatility and the need for strong earnings to sustain valuation expansion. The discussion also covers the implications of tariffs and tax cuts on equity markets.

What were the major drivers for markets in 2024 according to the speaker?

• Decline in technology stocks

• Increase in global oil prices

• Rise in unemployment rates

• Federal Reserve's easing cycle and AI trends

How did the US election and Trump's victory affect the markets?

• It caused a decline in market confidence

• It propelled markets to new highs

• It led to a decrease in market volatility

• It resulted in a significant drop in stock prices

What is a potential challenge for markets in maintaining valuation expansion?

• Increase in global trade barriers

• Decrease in consumer spending

• Changes in the Federal Reserve's trajectory

• Lack of technological advancements

What economic policy is mentioned as a potential factor for market volatility in 2025?

• Increase in interest rates

• Expansion of healthcare subsidies

• Introduction of new environmental regulations

• Implementation of tariffs

What is the uncertainty regarding tax cuts in 2025?

• Whether they will be permanent or temporary

• If they will lead to an increase in inflation

• Whether they will be implemented in the first or second half of the year

• If they will be applicable to all income groups