Kettner: US Dollar Becoming More Attractive Again

The video discusses current market trends, focusing on the lack of a clear risk-on environment despite rallies in various asset classes. It examines the Fed's data-dependent approach and its impact on market sentiment, highlighting the potential for a single CPI number to disrupt current trends. The discussion also covers the role of portfolio rebalancing and unwinding of hedges in the market, concluding with investment strategies in multi-asset portfolios, emphasizing the attractiveness of the dollar, energy sector, and emerging market assets.

What is the main reason the speaker is not convinced about the current rally in equities?

• A clear risk-on environment is present.

• Fed rate hike expectations have increased.

• Inflation is not under control.

• The Swiss franc and Japanese yen are weakening.

According to the speaker, what is the nature of a data-dependent Fed?

• It guarantees rate hikes.

• It is always hawkish.

• It provides clear guidance.

• It is unpredictable.

What could potentially disrupt the current market rally, according to the speaker?

• A decrease in CPI numbers.

• A single above consensus CPI number.

• A dovish Fed statement.

• A strong dollar.

What does the speaker suggest might be happening instead of portfolio rebalancing?

• Increased investment in fixed income.

• Unwinding of downside hedges.

• A shift to risk-off assets.

• A focus on gold investments.

What is the current sentiment indicator level mentioned by the speaker?

• 50th percentile

• 75th percentile

• 20th-25th percentile

• 90th percentile

Which asset does the speaker find more attractive due to recent market movements?

• Japanese Yen

• Gold

• The Dollar

• The Euro

What is the speaker's view on the energy sector?

• It lacks demand.

• It remains attractive due to tight supply.

• It is facing declining earnings.

• It is overvalued.