Convergex's Colas: Tear Up the Playbook on Rate Hike

The transcript discusses the unexpected economic data affecting the Fed's decision-making process, particularly regarding interest rate hikes. It highlights the disconnect between the Fed's previous narrative and the current economic reality, especially in the jobs market. The impact of global events, such as Brexit, on the Fed's decisions is also examined. The discussion concludes with an analysis of market reactions and the economic outlook, emphasizing the role of bond yields in supporting equities despite sluggish growth.

What was the initial probability of a rate hike in June before the unexpected economic data?

• 50%

• 30%

• 90%

• 6%

Which geopolitical event is influencing the Fed's decision-making process in June?

• Middle East Tensions

• Brexit Vote

• US Presidential Election

• China's Economic Growth

What was the weakest job projection from the National Bank of Canada?

• 50,000 jobs

• 70,000 jobs

• 90,000 jobs

• 110,000 jobs

How do bond yields affect equity valuations according to the discussion?

• Bond yields have no effect on equity valuations

• Lower bond yields support equity valuations

• Bond yields only affect short-term equity valuations

• Higher bond yields decrease equity valuations

What is the expected economic growth rate mentioned for the second half of the year?

• 0.5% to 1%

• 1% to 1.5%

• 1.5% to 2%

• 2% to 2.5%