The ‘Ultimate Contrarian Trade’ Makes New Friends

The ‘Ultimate Contrarian Trade’ Makes New Friends

Assessment

Interactive Video

Business

University

Hard

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The video discusses the performance of European markets, highlighting the role of central banks in shaping market dynamics. It explores the impact of central bank policies on risk assets and fixed income, emphasizing the shift towards easier monetary policies. The discussion also covers the supply-demand dynamics in fixed income markets and the implications of trade relations on European bonds.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the initial expectation for central banks going into 2018?

To lead a move towards higher interest rates

To focus on quantitative easing

To maintain current interest rates

To lower interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the Fed's actions influence the market's view on risk assets?

Led to a decrease in stock prices

Increased fear of economic downturn

Caused a shift to cash holdings

Provided support for risk assets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant factor in the demand for fixed income according to the discussion?

Decreasing commodity prices

Rising stock market

Dovish central bank policies

High inflation rates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might European investors hold German bonds in their portfolios?

For tax benefits

Due to high liquidity

As a safe asset

For high returns

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could potentially drive a backup in bond yields according to the discussion?

Rise in unemployment

Increase in inflation

Resolution of trade disputes

Decrease in central bank rates