When Is It Time to Get Out of Risk Assets?

The video discusses bond market pricing, focusing on the yield curve's role in predicting economic slowdowns and recoveries. It explains how central bank actions, like rate cuts, influence the yield curve and signal potential recessions. The video also covers investment strategies during these economic phases, emphasizing the importance of safety over risk assets.

What is the bond market currently pricing in?

• A financial crisis

• Stable economic conditions

• A slowdown in the economy

• A rapid economic growth

What typically happens to the yield curve when central banks start cutting rates aggressively?

• It steepens

• It inverts

• It flattens

• It remains unchanged

What does a re-steepening of the yield curve indicate?

• An upcoming economic boom

• A potential recession

• Stable economic conditions

• A decrease in inflation

When is the worst time to invest in risk assets according to the video?

• During a period of economic expansion

• During a yield curve inversion

• When the yield curve is flat

• When the yield curve steepens after rate cuts

What should investors focus on during aggressive rate cuts?

• Buying more bonds

• Staying in safe assets

• Investing in foreign markets

• Investing in risk assets