JPM's Wolf Likes Developed Market Cyclicals, Financials

The video discusses the December minutes, highlighting a slight surprise in the balance sheet runoff and the debate around rate liftoff. It emphasizes the achievement of inflation and labor market mandates, suggesting a few rate hikes in a low real rate environment. The speaker is positive on developed markets, particularly industrials and financials, expecting yields to rise. Infrastructure investment and corporate CapEx recovery are also noted. The video favors developed markets over emerging ones, with a cautious stance on China, highlighting selective interest in onshore equities due to early signs of easing.

What is the expected trend for yields by the end of the year?

What are the risks associated with emerging markets, particularly in relation to China?