Credit Suisse's Xu: Play Long Gold as Real Yields Peak

The video discusses the inverse relationship between real yields and investments in tech and gold, suggesting gold as a better option during peak real yields. It examines inflation's impact on derivative strategies, highlighting the Fed's aggressive stance on curbing inflation and its effects on bond ETFs. The video also analyzes the recent market rally, noting the lack of bearish bets and significant deleveraging in the derivatives market.

What is the main reason the speaker prefers investing in gold over tech during a peak in real yields?

• Tech has historically outperformed gold.

• Gold is a better hedge against rising recession risks.

• Tech is less affected by recession risks.

• Gold has a direct relationship with real yields.

How does the speaker suggest incorporating inflation into a derivative strategy?

• By avoiding bond ETFs.

• By focusing solely on tech stocks.

• Through hybrid options or equity options contingent on rates.

• By investing in short-term bonds.

What is the speaker's view on the Fed's potential pivot regarding inflation?

• The Fed will pivot quickly.

• The Fed has already pivoted.

• Inflation will drop to 2% soon.

• The Fed will remain aggressive in curbing inflation.

What characteristic of the recent market rally does the speaker highlight?

• High levels of hedging in the derivatives market.

• Significant deleveraging and de-risking.

• Strong conviction behind the rally.

• Increased bearish bets on the US economy.

According to the speaker, what has been the trend in the derivatives market during the recent rally?

• Increased hedging activities.

• Minimal hedging and low VIX levels.

• Stable levels of VIX and vivix.

• High conviction in bullish bets.