The Worst of Market Volatility Is Over, Says Danske Bank’s Harr

The transcript discusses the state of the S&P 500 and the concept of market capitulation, suggesting that the worst of market volatility may have passed due to aggressive measures by the Fed and fiscal easing. It also touches on the peaking of virus cases in the US. The conversation shifts to fixed income, noting that the 10-year Treasury yield is supported by QE and is likely to remain stable, despite being a manipulated market.

What were the two main reasons cited for the perceived stabilization in market volatility?

• Improved global trade relations and tax cuts

• Increase in new virus cases and fiscal tightening

• Decrease in interest rates and rising inflation

• Aggressive measures by the Fed and fiscal easing

What percentage drop would the S&P 500 need to reach its March 23rd level?

• 12.7%

• 5.2%

• 15.3%

• 9.4%

What is the potential impact on Treasurys if there is a further sell-off in equities?

• Money moves to real estate, stabilizing yields

• Money moves to commodities, fluctuating yields

• Money moves to stocks, increasing yields

• Money moves to Treasurys, lowering yields

What is the current trading range for the 10-year yield in the US?

• Around 120 basis points

• Around 30 basis points

• Around 90 basis points

• Around 60 basis points

What factor is contributing to the stability of the fixed income market despite its size?

• Decreasing government debt

• Rising interest rates

• Massive QE support

• High inflation rates