2022 Will Be a Year of Volatility: QIC's Morris

The video discusses the impact of inflation on markets, highlighting the unexpected rise in inflation due to global fiscal stimulus. It explores the volatility expected in 2022 as markets adjust to policy changes, including the exit from QE policies and rate hikes. The discussion includes the Fed's pivot and market expectations, emphasizing the challenges in forecasting due to increased uncertainty and potential market volatility.

What was the main theme of 2021 according to the speaker?

• Environmental issues

• Technological advancements

• Inflation

• Political changes

What is expected to characterize the year 2022?

• Decline

• Stability

• Volatility

• Growth

What challenge do central banks face according to the speaker?

• Implementing new policies

• Exiting extreme policies

• Increasing inflation

• Decreasing interest rates

Why did the speaker decide to move to a neutral stance on break-even rates?

• There is no price pressure

• Markets are pricing in rate hikes

• Inflation is expected to fall

• The economy is stable

What is the expected reaction in markets if inflation surprises to the upside?

• Decrease in volatility

• Stable market conditions

• Decrease in interest rates

• Accelerated pace of timing

What has been observed in forecasts that hasn't happened since the GFC?

• Decreasing volatility

• Stable outcomes

• Broadening dispersion

• Narrowing dispersion

Why is being nimble important for active managers according to the speaker?

• To maintain stability

• To adapt to wide-ranging outcomes

• To increase profits

• To reduce costs