What Will a Normal Bond Market Look Like After Covid?

The video discusses the post-COVID bond market, questioning if current yields represent a new normal. It explores the impact of Fed policy, particularly average inflation targeting, on market dynamics. The discussion extends to the growth trade in the equity market, highlighting the role of low interest rates in boosting big tech valuations. Finally, it examines credit market dynamics, emphasizing reflexivity and the influence of investor optimism on financial conditions.

What factors contribute to the perception of a 'new normal' in the bond market post-COVID?

How might the Federal Reserve's policy on average inflation targeting impact the economy in 2021?

In what ways have low interest rates influenced the performance of big tech stocks?

What role does investor sentiment play in the credit market according to the discussion?

Discuss the implications of the Fed's low interest rates on the overall credit conditions.