Lack of Inflation Fear Can Make Risk-Free Assets Risky, Says Slok

The video discusses the current market trends where investors are moving towards riskier assets despite the traditional view of risk-free assets like gold and US 10-year bonds. It highlights the potential impact of inflation on these assets and the disconnect between market expectations and the Federal Reserve's stance on interest rate hikes. The discussion also touches on the challenges of traditional economic models in predicting inflation and growth, considering factors like globalization and technology.

What is the current trend among investors regarding risk-free assets?

• Investors are only interested in emerging markets.

• Investors are indifferent to risk-free assets.

• Investors are moving away from risk-free assets.

• Investors are increasingly seeking risk-free assets.

What is the market's expectation for interest rate hikes in 2019?

• The market expects ten hikes.

• The market expects no hikes.

• The market expects six hikes.

• The market expects two hikes.

What is the main reason for the disconnect between market expectations and the Federal Reserve's actions?

• The market believes in strong globalization effects.

• The Federal Reserve is following outdated economic models.

• The market expects higher inflation than the Federal Reserve.

• The Federal Reserve is not aware of market trends.

What is one of the challenges faced by economists in adapting to new market realities?

• Calculating GDP growth accurately.

• Finding significant variables in econometric models.

• Understanding the impact of globalization.

• Predicting stock market trends.

What is the 'Amazon effect' mentioned in the context of inflation?

• An effect that increases inflation due to technology.

• A factor that keeps inflation down despite growth.

• A phenomenon where inflation is driven by online retail.

• A strategy used by the Federal Reserve to control inflation.