Bloomberg Market Wrap 12/10: Volatility and Treasury Yields

The video discusses the VIX and Skew Index, highlighting their roles in measuring market volatility and risk. It examines historical trends in the VIX, particularly in relation to the S&P 500, and suggests that current levels may indicate potential future market movements. The video also explores recent trends in the bond market, noting significant inflows into bond ETFs as investors seek safer investments amid market uncertainty.

What does the skew index measure in the market?

• The daily trading volume

• The number of active traders

• The potential for extreme market movements

• The average stock price

What historical event is associated with a VIX spike above 50?

• The 2008 financial crisis

• The dot-com bubble burst

• The August 2015 market correction

• The 2020 COVID-19 pandemic

What is a common pattern following a market capitulation bottom?

• Steady decline in stock prices

• Stable market conditions

• Panic selling followed by greedy buying

• Immediate market recovery

What recent trend has been observed in bond investments?

• Stable bond market conditions

• Increased inflows into bond ETFs

• High volatility in bond prices

• Decreased interest in bonds

What yield did Kathy Jones of Schwab suggest might have been the high for the 10-year yield?

• 3.0%

• 3.5%

• 2.5%

• 3.25%