AB Bernstein's Fisher Says Market Was 'Too Good and Too Calm' Ahead of Selloff

The video discusses the unexpected calmness of clients despite market volatility, highlighting the exceptional performance of the S&P in 2017 due to strong returns and low volatility. It examines the market downturn, particularly in bond markets, and the impact of tighter monetary policy on duration trades. The discussion emphasizes the risks associated with rising bond yields and the strategies investors use to hedge against these risks.

What was notable about the S&P's performance in 2017?

• High volatility and strong returns

• Average volatility and returns

• Low volatility and strong returns

• High volatility and low returns

What is a key concern for investors in the bond market?

• Stable bond prices

• Decreasing bond yields

• Increasing bond prices

• Rising bond yields

How have investors been adjusting their portfolios over the last decade?

• Avoiding equities

• Focusing on short-term investments

• Adding duration

• Reducing duration

What provides a cushion against rising bond yields?

• Real estate

• Commodities

• Corporate bonds

• Government bonds

What is the impact of tighter monetary policy on bond prices?

• Bond prices decrease

• Bond prices are unaffected

• Bond prices remain stable

• Bond prices increase