Why Goldman's Mueller-Glissman Is Underweight Bonds

The video discusses the current market strategy, focusing on being neutral in equities and credit, underweight in bonds, and overweight in cash and commodities. It highlights the fading rates volatility due to peak inflation and central banks nearing the end of their tightening cycles. However, new rates volatility arises from sticky inflation and re-acceleration risks. The discussion includes the effectiveness of monetary policy and potential market risks. The video also explores investment opportunities in equities, particularly in Asia and Japan, due to growth momentum and global linkages.

What is the current stance on equities and credit according to the investment strategy discussed?

• Overweight

• Highly overweight

• Neutral

• Underweight

Why is there a new burst of rates volatility in the market?

• Because of sticky inflation and re-acceleration risks

• Because of increased demand for bonds

• As a result of central banks cutting rates

• Due to decreasing inflation

What is the purpose of maintaining an underweight position in bonds?

• To hedge against potential market shocks

• To maximize returns

• To align with market consensus

• To increase liquidity

Which regions are highlighted for their growth momentum in the investment strategy?

• Australia and New Zealand

• South America and Africa

• Europe and North America

• Asia and Japan

What is the potential benefit of focusing on non-US markets according to the strategy?

• Cyclical risk opportunities

• Lower risk

• Stable returns

• Higher liquidity