Bensignor, McMillan on Volatility, Markets

The video discusses two high-conviction investment ideas for 2019, focusing on volatility and the bond market. It predicts the VIX will range between 14-18 on the downside and 30-36 on the upside, suggesting a more defensive portfolio strategy with a focus on healthcare and energy. The discussion also covers the shift from sector-based to stock-specific investments due to changing market correlations. In the bond market, the video forecasts a trading range for 10-year yields between 2.4% and 3%, with differing opinions on future rate movements.

What is the predicted range for the VIX index in 2019?

• 30 to 36

• 14 to 18

• 50 to 60

• 10 to 20

Which sector is considered a good defensive investment in a volatile market?

• Technology

• Consumer Discretionary

• Healthcare

• Real Estate

Which sector is mentioned as a contrarian bet in the investment strategy?

• Consumer Staples

• Utilities

• Energy

• Financials

What trend is being observed in market correlations?

• Correlations are decreasing

• Correlations are increasing

• Correlations are unpredictable

• Correlations remain unchanged

What is the main reason for the shift towards active management?

• Lack of investment options

• Increased market stability

• Higher returns in passive management

• Breakdown of market correlations

What is the expected range for the 10-year benchmark yields in the US for 2019?

• 2.4% to 3%

• 1% to 2%

• 4% to 5%

• 3% to 4%

What is the significance of the 3.31% target mentioned in the bond market predictions?

• It was the peak yield in 2018

• It is the expected yield for 2020

• It was the target for the 10-year yield in 2018

• It represents the average yield over the past decade