Investors Forgo Protection as Market Turbulence Fades

The video discusses the current market euphoria and the low level of protection investors are willing to pay for, as indicated by the skew indicator. It highlights the role of cash in portfolios and the shift from equities to fixed income. The unexpected 12-13% rally in global equities over the first 10 weeks of the year is examined, with skepticism about its sustainability due to a lack of fundamental upgrades. The video also explores the potential for increased equity allocation if positive news emerges from first-quarter earnings or guidance changes.

What is the current trend regarding investor protection in the market?

• Investors are paying more for protection than ever before.

• Investors are increasingly paying for protection.

• Investors are reluctant to pay for protection.

• Investors are neutral about paying for protection.

What was the unexpected market event in the first 10 weeks of the year?

• A decline in global equities.

• A 12 to 13% rally in global equities.

• A stabilization of global equities.

• A minor increase in global equities.

What has been a major driver of the market this year?

• An upgrade of fundamentals.

• A downgrade of fundamentals.

• A decrease in market prices.

• A RE rating.

What could potentially lead to increased equity allocations?

• Positive news on the fundamental side.

• A decrease in market volatility.

• Negative news from first-quarter earnings.

• A decline in fixed income investments.

What was expected to be the low point in terms of overall earnings growth?

• The second quarter of 2019.

• The first quarter of 2019.

• The end of 2018.

• The third quarter of 2019.