Aita: We're in the Camp of Transitory Inflation

The transcript discusses inflation trends, the Federal Reserve's potential actions, and market expectations. It highlights the Fed's focus on employment data and the possibility of tapering. The discussion also covers market trends, risks, and economic fundamentals, noting the impact of the Delta variant and earnings season. Additionally, it examines China's financial stability, particularly concerning Evergrande's debt and its implications for foreign investors.

What is the current trend in core CPI according to the discussion?

• Core CPI is stable.

• Core CPI is unpredictable.

• Core CPI is improving.

• Core CPI is worsening.

What is the Federal Reserve expected to announce in November?

• A rate hike

• A new monetary policy

• Tapering

• A reduction in employment data focus

How many rate hikes per year does the market expect for 2023-2024?

• Five to six

• One to two

• None

• Three to four

What is the current market sentiment regarding the Delta variant and earnings season?

• Uncertain with mixed signals

• Positive due to peaking Delta variant and decent earnings

• Neutral with no significant impact

• Negative due to high risks

What is the main concern regarding Evergrande's financial situation?

• Strong market support

• Increased foreign investment

• Systemic risk to China's financial stability

• High profits

What strategy is recommended for investors with heavy positions in Chinese high yield bonds?

• Invest more in Evergrande

• Focus solely on equities

• Shift to higher quality bonds like double B

• Increase exposure to B-rated bonds

What is the regulatory environment in China currently affecting?

• Real estate and equities

• All sectors equally

• Only the technology sector

• None of the sectors