Havens Crushed as Risk-Off Trade Implodes

The video discusses the current state of currency exchange rates, particularly the yen to dollar, and the performance of risk assets. It highlights the challenges faced by investors in safe havens due to low or negative returns. The video also compares the performance of equities and bonds, noting that equities have outperformed despite a long bull market in bonds. It concludes with a discussion on the potential for increased risk appetite if global trade tensions ease, and the need for increased capital investment to boost productivity.

What is one of the main challenges investors face with safe havens currently?

• High returns on investment

• Negative real returns

• Lack of availability

• Increased volatility

Why have equities performed well relative to bonds despite a long bull market in bonds?

• Better bond liquidity

• Increased bond volatility

• Lower carry in bonds

• Higher interest rates

What could potentially increase risk appetite according to the discussion?

• Higher interest rates

• Elimination of political and global trade tensions

• Decreased stock market volatility

• Increased bond yields

What has been a noticeable trend among corporates in the manufacturing sector?

• Higher productivity

• Expansion of operations

• Diminished confidence

• Increased capital deployment

What is needed to enhance productivity according to the discussion?

• Increased capital investment

• More government regulations

• Reduced corporate taxes

• Higher interest rates