Days of Single-Digit Vol Are Probably Long Gone, Says Eric Liu

The video discusses the current state of the market, highlighting the crowded positioning in equities and the elevated volatility levels. It explores the potential normalization of volatility and the impact of past volatility suppression on market dynamics. The discussion also covers the fundamentals of the U.S. market, the role of the Fed, and the attractiveness of global markets. Finally, it addresses concerns in the bond market, particularly regarding supply and credit stability.

What is the current state of equities according to the transcript?

• Equities are stable.

• Equities are crowded.

• Equities are declining.

• Equities are sparsely populated.

How is the VIX described in the transcript?

• Stable and low.

• Unchanged.

• Elevated and inverted.

• Declining steadily.

What does the transcript suggest about the future of market volatility?

• It will return to low single digits.

• It will stabilize at mid-20s.

• It will rise to 50s.

• It will remain unpredictable.

What is the current state of the bond market according to the transcript?

• It is showing signs of recovery.

• It is experiencing significant turmoil.

• It is stable and unaffected by equity movements.

• It is declining rapidly.

What is surprising about the credit and investment-grade markets?

• They have collapsed.

• They have remained rock solid.

• They have shown extreme volatility.

• They have widened significantly.