Market Volatility May Increase, FTSE Russell's Young Says

The video discusses the anticipated market returns and investor sentiment, highlighting the likelihood of increased volatility and lower returns due to economic cycle uncertainties. It emphasizes the impact of policy uncertainty, particularly from the Fed and trade policies, on market volatility. The discussion also covers the Fed's communications and market reactions, noting a repricing of expectations for Fed tightening in 2019 due to economic data and inflation pressures.

What is the expected trend for economic returns in the coming year according to the first section?

• Unchanged returns with no volatility

• Decreased returns with increased volatility

• Stable returns with moderate volatility

• Increased returns with low volatility

What is a recommended strategy for investors given the current economic cycle stage?

• Invest heavily in high-risk stocks

• Maintain a defensive equity allocation

• Withdraw all investments from the market

• Focus solely on short-term gains

What are the two main sources of policy uncertainty affecting market volatility?

• Immigration policy and labor policy

• Healthcare policy and education policy

• Fiscal policy and environmental policy

• Monetary policy and trade policy

How does policy uncertainty impact investors' ability to value equities?

• It completely eliminates visibility

• It has no impact on visibility

• It reduces visibility on fundamentals

• It increases visibility on fundamentals

What recent economic factors have influenced the market's expectations for Fed tightening in 2019?

• Rising oil prices and increasing inflation

• Stable oil prices and constant inflation

• Dropping oil prices and dimming inflation pressures

• Unchanged oil prices and inflation pressures