Volatility Is Here to Stay, Says M&G’s Hanson

The transcript discusses the current state of the market, highlighting the impact of political events and market psychology on volatility and bond yields. It explores the potential for market rallies with positive news and the risks associated with current bond market dynamics. The discussion also covers investment strategies, emphasizing the attractiveness of emerging market debt and equities with high dividend yields compared to G7 government bonds.

What can cause a rally in pessimistic markets according to the first section?

• A significant drop in oil prices

• A small piece of positive news

• A major economic recession

• A rise in unemployment rates

What psychological effect does the yield curve inversion have on investors?

• It increases nervousness about future growth

• It causes them to sell off their stocks

• It makes them more confident about future growth

• It leads them to invest more in real estate

What is a potential risk of investing in the bond market as discussed in the third section?

• High inflation rates in developed markets

• Excessive government intervention

• Lack of liquidity in the bond market

• Severe capital loss if yields rise

Which investment option is suggested for better yields in the current market environment?

• Emerging market debt

• Cryptocurrencies

• G7 government bonds

• Real estate in developed countries

What is the dividend yield mentioned for nearly half the stocks in the Footsie 100?

• 3%

• 5%

• 2%

• 4%