Deutsche Bank's Chadha Explains the Banks Warning on Contagion

The video features Binky Chadha discussing market positions, highlighting extended positions across asset classes and the likelihood of a pullback. It examines consensus trades like long oil and equities, and the subsequent market corrections. Chadha provides insights into equity positioning, correlating it with growth indicators like ISM. The discussion also covers market correlations, noting risks when assets move together. Finally, the importance of fundamentals in extreme market positioning is emphasized, warning of potential unwinds if fundamentals don't support the positions.

What were the consensus trades mentioned in the first section?

• Short oil, long euro, short equities, short rates

• Long oil, short euro, long equities, long rates

• Short oil, short euro, short equities, long rates

• Long oil, long euro, long equities, short rates

How is equity positioning correlated with growth indicators?

• It is weakly correlated with ISM indicators

• It is not correlated with ISM indicators

• It is inversely correlated with ISM indicators

• It is strongly correlated with ISM indicators

What is a sign of unhealthy markets according to the second section?

• When different asset classes move independently

• When everything moves together, risk on or risk off

• When only equities move together

• When only oil and euro move together

What happened to the correlations among asset classes in the third section?

• They increased significantly

• They remained stable

• They collapsed

• They became unpredictable

What is crucial when market positioning is extreme?

• Ensuring fundamentals deliver for the position

• Focusing on short-term gains

• Relying on technical analysis

• Ignoring fundamentals