Bloomberg Intelligence's 'Equity Market Minute' 6/16/2021

Gina Martin Adams from Bloomberg Intelligence discusses the current state of financial conditions, which are extremely easy, and the economy, which is running hot. She highlights that the Fed taper is imminent, potentially leading to a challenging period for stocks, as seen in previous cycles. The Financial Conditions Index, excluding the equity market, shows conditions similar to 2013. The job market is also strong, with unemployment rates comparable to the last Fed taper period. The video concludes with a summary of these insights.

What is the current state of financial conditions according to the introduction?

• Financial conditions are extremely tight.

• Financial conditions are moderately challenging.

• Financial conditions are unpredictable.

• Financial conditions are extremely easy.

What does the Fed's tapering potentially mean for the stock market?

• It will lead to a boom in stock prices.

• It may present a tough period for stocks.

• It will stabilize stock prices.

• It will have no impact on stocks.

What does the Financial Conditions Index exclude to show the ease of conditions?

• The bond market

• The housing market

• The equity market

• The commodities market

To which year do we have to go back to find similarly accommodative financial market conditions?

• 2018

• 2010

• 2013

• 2015

What job market levels are consistent with the last time the Fed tapered the balance sheet?

• Levels last recorded in 2010

• Levels last recorded in 2012

• Levels last recorded in 2014

• Levels last recorded in 2016