Election Increases Powell’s Fed Chair Chances: BNY Mellon’s Levine

The video discusses market trends in October, highlighting a strong rally and positive earnings. It anticipates a strong market into 2022. The bond market shows interesting dynamics with an inverted break-even curve and hawkish rate hike pricing. Powell's potential re-election is discussed in light of recent electoral outcomes, suggesting continuity in Fed policy. Inflation is examined, with signs of supply chain recovery and economic indicators suggesting a possible peak. The pain trade is explored, with predictions on tech stocks and yields.

What was the market trend observed in October?

• A steady decline throughout the month

• A flat market with no significant changes

• An initial sell-off followed by a strong rally

• A consistent upward trend

What is the relationship between the break-even curve and market pricing of rate hikes?

• They are aligned with each other

• They are at odds with each other

• They have no relation

• They both indicate a bearish market

What political event is suggested to increase Powell's chances of re-election?

• A shift towards more centrist policies

• A move towards more liberal policies

• An emphasis on international trade

• A focus on conservative policies

What does 'transitory' inflation currently imply?

• Sustained and prolonged but eventually reversible

• Unrelated to current economic conditions

• Permanent and irreversible

• Short-term and quickly reversible

What is the potential 'pain trade' in the current market?

• Going long on tech and yields not moving as expected

• Investing heavily in commodities

• Shorting tech and going long on bonds

• Avoiding all market investments