Janus' Maroutsos: Makes Sense to Own Front End of Yield Curve

The video discusses the challenges of achieving a 2% inflation target, the role of central banks, and the impact of the pandemic on the economy. It highlights the deflationary effects of aging demographics and technological advances. The speaker suggests focusing on the front end of yield curves for investment, as central banks are unlikely to raise interest rates soon.

What is the main challenge in achieving a 2% inflation rate according to the speaker?

• There is no proven link between Central Bank easing and inflation.

• Central Bank policies are too aggressive.

• Inflation is too volatile to control.

• The global financial crisis has permanently altered inflation dynamics.

How does the pandemic affect the likelihood of achieving the desired inflation rate?

• It stabilizes inflation at the desired rate.

• It has no effect on inflation.

• It decreases inflation due to high unemployment and economic uncertainty.

• It increases inflation due to higher demand.

What role does the Federal Reserve play during the pandemic according to the speaker?

• It focuses on reducing inflation.

• It limits technological advances.

• It provides a bridge to support the economy.

• It aims to increase interest rates.

Why is investing in the front end of yield curves considered beneficial?

• Because it offers high volatility and risk.

• Because it provides low information ratios.

• Because central banks are expected to raise rates soon.

• Because central banks are unlikely to raise rates in the near future.

Which countries are mentioned as having positive yielding yield curves in the front end?

• China, Japan, South Korea, India

• United Kingdom, Germany, France, Italy

• Brazil, Argentina, Mexico, Chile

• United States, Canada, Australia, New Zealand