Overseas Bank Head's Heng Sees Markets 'Cautious' Before Inauguration Day

The transcript discusses the cautious market sentiment ahead of the US presidential inauguration, highlighting the impact of political events on risky assets. It examines the rise in US yields and the potential economic implications, including concerns about inflation and the Fed's limited tools to manage the situation. The discussion also covers the significant growth in US money supply and its influence on stock market behavior, emphasizing the need for gradual adjustments to avoid market disruptions.

What is the market sentiment ahead of the inauguration according to the transcript?

• Indifferent and stable

• Cautious and risk-averse

• Optimistic and risk-taking

• Aggressive and speculative

What concern does Mohammed El-Erian express about the yield curve movements?

• They will result in a stronger dollar

• They might cause stagflation

• They could increase unemployment

• They could lead to a stock market crash

What is the Federal Reserve hoping for in terms of inflation?

• Deflation to reduce debt

• Lower inflation to boost savings

• Higher inflation without stagflation

• Stable inflation with no growth

What is a common factor among the speculative assets like Tesla and Bitcoin?

• Decreasing US money supply

• Stable interest rates

• Significant US money supply growth

• Declining stock market

What is the impact of the US money supply growth on the market?

• It stabilizes the market

• It reduces speculative excesses

• It has no impact on the market

• It fuels speculative excesses