Markets Shrug Off Policy Uncertainty

The video discusses the rising global economic policy uncertainty index and the fear index, highlighting the divergence between them. It explores various risks like globalization collapse and Brexit, and how markets have reacted. The video also examines inflation expectations, the VIX, and the CBOE skew index, analyzing their implications on market volatility. Finally, it discusses the impact of US policies, particularly under Trump, on global markets and asset classes.

What is one reason for the divergence between the global economic policy uncertainty index and the VIX?

• Low realized volatility

• Decreased market hedging

• Increased market hedging

• High realized volatility

What has been a significant factor in the rise of US inflation expectations?

• US election results

• Decreased manufacturing in Asia

• Falling consumer sentiments in the Eurozone

• Global deflation trends

What does the CBOE skew index indicate?

• Investor confidence in market stability

• Low market volatility

• High market volatility

• Investor hedging against tail risks

Why might the VIX be considered a false indicator of market signals?

• It does not always correlate with S&P gains

• It perfectly predicts market downturns

• It is always low during market losses

• It is always high during market gains

Which asset class might be least affected by Donald Trump's policies?

• Commodities

• Real estate

• Technology stocks

• Municipal bonds