Macquarie's Lakos Sees Inflation as Biggest Risk

The transcript discusses the impact of non-farm reports on market expectations, particularly focusing on bond and equity markets. It highlights the role of central bank policies and inflationary pressures in shaping market trends. The discussion also covers the potential onset of a bond bear market and the normalization of economic growth, with central banks adjusting their policies accordingly.

What is the bond market's expectation for the non-farm payroll report?

• A rise in inflation rates

• A decrease in wage growth

• A 178,000 to 180,000 read on employment

• A significant increase in unemployment

What is a key concern for equity markets as bond yields rise?

• The stability of central bank policies

• The impact on market returns

• The decrease in inflation

• The increase in employment rates

What is the potential risk mentioned in relation to the end of central bank stimulatory policies?

• Increased quantitative easing

• Inflationary pressures

• Decreased employment

• Deflationary pressures

What is expected from the Federal Reserve in terms of interest rates?

• A decrease in interest rates

• No change in interest rates

• Three or four rate hikes

• A complete halt to rate changes

What action is the ECB expected to take regarding its quantitative easing process?

• Increase quantitative easing

• Maintain current levels

• Taper back the process

• Completely stop the process