BlackRock’s Hildebrand Sees ‘Very Big Contraction’ by Year End

The video discusses the anticipated economic contraction, highlighting a potential 6% GDP decline due to shutdowns. It explores assumptions about partial lockdowns and market risks, emphasizing the likelihood of disinflation in the short term. The discussion also covers long-term inflation risks, driven by public debt and changes in globalization, suggesting that the market may underestimate these risks.

What is the expected GDP contraction by the end of the year?

• 3%

• 6%

• 9%

• 12%

What is the market's current stance on the risk of new virus waves?

• The market is ignoring the risk.

• The market has partially priced in the risk.

• The market is unaware of the risk.

• The market has fully priced in the risk.

What is the short-term effect of the economic contraction on inflation?

• Inflationary

• Stagflationary

• Deflationary

• Disinflationary

What long-term risk is associated with the economic contraction?

• Inflation

• Stability

• Recession

• Deflation

How might globalization change in the future according to the discussion?

• It will become more unified.

• It will disappear completely.

• It will remain unchanged.

• It will become more fragmented.