Lower for Longer: Navigating the U.S. Trading Environment

The video discusses the current low volatility in the US market and the attractiveness of structured credit as an investment due to its robust fundamentals and good cash flows. It compares different types of structured credit, such as RMBS, CMBS, and CLOs, highlighting CMBS as having the most upside. The potential impact of Fed rate hikes on investment strategies is also examined. Finally, the video explains the decision to drop gold from the portfolio, noting its past performance and potential future under certain economic conditions.

What is one of the main reasons structured credit is considered attractive in the current market?

• Rising equity prices

• High interest rates

• Low volatility and robust fundamentals

• Increasing inflation

Which type of structured credit is considered the most misunderstood and potentially lucrative?

• RMBS

• CLOs

• CMBS

• Equities

What factor could reduce the attractiveness of structured credit?

• A significant increase in Fed rate hikes

• A decrease in equity volatility

• A stable housing market

• A decline in cash flows

Why was gold removed from the portfolio despite its past performance?

• It was no longer a good hedge

• Gold prices were too high

• The market for gold collapsed

• There were better investment opportunities

Under what economic condition might gold become an attractive investment again?

• Stable interest rates

• High inflation

• A recession with Fed rate cuts

• A strong bull market