Is the Hunt for Yield Driving Monetary Policy?

The transcript discusses the impact of fiscal spending on employment and wages, highlighting the potential for increased demand for labor and higher wages due to low unemployment. It also examines the interconnectedness of global markets, particularly how European bond movements influence US Treasurys. The role of central banks in shaping market dynamics through policies like quantitative easing is explored, along with the potential effects of a Clinton presidency on tax policy and municipal bonds.

What is a potential consequence of low unemployment and increased fiscal spending?

• Higher unemployment rates

• Decreased wages

• Lower demand for labor

• Increased wages due to lack of skilled labor

What is one reason for the recent sell-off in US Treasurys?

• Increased US fiscal spending

• Rising US inflation

• German bonds selling off

• US economic data

How did risk and riskless assets behave in the first nine months of the year?

• Riskless assets outperformed risk assets

• Risk assets outperformed riskless assets

• They were perfectly correlated

• They were inversely correlated

What is a potential market reaction to a Clinton presidency with more onerous tax policies?

• Decrease in muni market activity

• Increase in muni market activity

• Stability in muni market activity

• Decline in stock market

What is the biggest concern of the market with a Clinton presidency?

• Lower interest rates

• Decreased government spending

• Higher unemployment

• Increased taxes