Distenfeld: Risk Markets Are Ahead of Themselves

The video discusses market sentiment influenced by Trump's policies, investment strategies for 2017, credit risk, and market cycles. It highlights the importance of diversifying portfolios, especially in high-yield and global bonds, due to interest rate volatility. The discussion also covers the extension of the credit cycle and its implications for future market performance.

What is one reason the market is currently pricing in potential good outcomes related to Trump's policies?

• There is a focus on deregulation and tax reform.

• Investors are ignoring all risks.

• The market is always optimistic.

• The market is driven by short-term gains.

Why might investors consider reducing triple C risk in their portfolios?

• Triple C risk is the riskiest part of the portfolio.

• Triple C risk is the safest investment.

• Triple C risk is unaffected by market cycles.

• Triple C risk offers the highest returns.

How did high yield returns in 2016 compare to previous years?

• They were the lowest since 2009.

• They were better than any time since 2009.

• They were average compared to the last decade.

• They were the same as in 2015.

What is a reason for diversifying into global bonds according to the discussion?

• Global bonds are always more profitable.

• There is increased volatility in the US market.

• Global bonds have no risk.

• US bonds are yielding higher returns.

What is a normal part of market cycles that should not surprise investors?

• A constant rise in equity prices.

• Periodic pullbacks and corrections.

• A permanent bull market.

• Continuous growth without setbacks.