Bill Gross: Why I'm Trying to Go Short on Credit

Bill Gross: Why I'm Trying to Go Short on Credit

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the challenges faced by investors in managing short durations and credit risk, emphasizing the difficulty of changing psychological makeup to adapt to market behaviors. It highlights the struggle of being comfortable with short positions and the influence of past market recoveries on current strategies. The speaker, a seasoned investor, shares insights on the systemic risks present in the financial system and the ongoing effort to balance belief in the system with risk management.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus of unconstrained investors regarding bond durations?

Investing in long-term bonds

Assuming more credit risk

Eliminating duration exposure

Increasing duration exposure

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do some investors find it challenging to change their psychological makeup?

Because they have always experienced market downturns

Because they are new to investing

Because markets have historically rebounded

Because they prefer short-term gains

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical market behavior is mentioned as influencing investor psychology?

Markets have always been unpredictable

Markets have never recovered from downturns

Markets have consistently snapped back

Markets have always been volatile

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What internal conflict does the speaker face regarding risk management?

Whether to take on more credit risk

Whether to believe in the system or not

Whether to invest in foreign markets

Whether to increase investments in bonds

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What belief does the speaker hold about the system despite acknowledging its risks?

The system is at risk but still trustworthy

The system is perfect for short-term gains

The system is infallible

The system will collapse soon