Washington Crossing Is Trimming Equity Exposure Across the Board

The video discusses tactical positioning in equities and bonds, highlighting the need to adjust strategies based on market momentum and economic conditions. It emphasizes the importance of evaluating risk and reward in bond allocation, considering credit quality and market spreads. The discussion also covers changes in market momentum, the impact of treasury bond yields, and the significance of market expectations. The video concludes with insights on managing risks and understanding market dynamics in a post-pandemic world.

What was the primary reason for adjusting the tactical positioning in equities and bonds?

• Expectations for 2021 were too low

• A bearish view on the economy

• A strong improvement in bond yields

• Momentum cannot continue indefinitely

In the bond market strategy, what change was made to manage risk?

• Shortened bond durations and improved credit quality

• Invested heavily in high-risk bonds

• Increased investment in lower quality credits

• Extended bond durations

Why is it important to consider how the market responds to incoming data?

• It provides more information than the data itself

• It helps predict future stock prices

• It ensures higher returns on investments

• It guarantees economic stability

What could lead to a market correction according to the discussion?

• Excessive earnings growth

• Disappointment in market deliverables

• High investor expectations

• A strong global economy

What is a potential risk when transitioning from a pandemic to a post-pandemic world?

• Decreased global stock market values

• Higher bond yields

• Insufficient earnings growth to meet expectations

• Increased market volatility