T. Rowe Price's Page Says 'We're Entering a Period of Turbulence'

The video discusses the current market environment, highlighting increased volatility and turbulence. It examines historical trends related to Federal Reserve hikes and their impact on market cycles. The speaker suggests a strategic shift from equities to bonds and cash, emphasizing the role of cash as a diversifier in times of interest rate shocks. Insights into Treasurys and cash market returns are also provided, with a focus on expected interest rates and their implications for investment strategies.

What analogy does the speaker use to describe the current market environment?

• A quiet forest

• A smooth road

• A turbulent aircraft

• A calm sea

How many times have P/E ratios declined following a Fed hike cycle according to historical data?

• 5 out of 8 times

• 8 out of 8 times

• 6 out of 8 times

• 7 out of 8 times

What is the current stance on Treasurys in terms of duration?

• Aggressively short

• Aggressively long

• Highly volatile

• Somewhat neutral

What is the expected return on cash by the end of the year?

• 1.6%

• 1.0%

• 2.5%

• 2.0%

What role does cash play in the current investment strategy?

• A primary investment

• The ultimate diversifier

• A volatile option

• A risky asset