David Kelly's Long-Term View of a Bond Rout Equity Boost

The video discusses the bond market's current state, its impact on equities, and the implications of a changing yield curve. It highlights the influence of international markets, particularly the ECB and BOJ, on US bonds. The discussion shifts to fiscal stimulus, its effect on the deficit, and the Federal Reserve's potential responses. The video concludes with a focus on the Federal Reserve's strategy to normalize rates to prepare for future economic challenges.

What is the current gap between the 10-year Treasury yield and core US inflation?

• 0.2%

• 2.4%

• 210%

• 50 basis points

Why might the global bond market act as less of an anchor in the US market?

• Because of increasing inflation rates

• Due to the removal of potential capital gains

• Because of higher corporate tax rates

• Due to a decrease in fiscal stimulus

What could be a consequence of fiscal stimulus according to the transcript?

• A more aggressive Federal Reserve

• Decreased Treasury offerings

• Lower operating earnings

• A decrease in the budget deficit

What is not a current constraint in the mortgage market?

• Credit score

• Interest rate

• Down payment

• Payment ability

Why does the Federal Reserve need to normalize interest rates?

• To reduce corporate tax rates

• To decrease inflation

• To prepare for future economic challenges

• To increase the budget deficit