Credit Suisse's Xu: Investors Hedging Modest Pullback, Not a Crash

The video discusses recent market trends, highlighting a lack of demand for hedges despite a 10% SNP pullback. It explores the role of leverage in the market, particularly in the tech sector, and the shift towards more modest protection buying. The discussion also covers hedging strategies in response to inflation risks and the breakdown of equity-bond correlations. Finally, it examines asset allocation strategies, emphasizing the role of commodities in diversifying portfolios during high inflation periods.

What factors have contributed to the recent increase in demand for hedges?

What role does the Federal Reserve play in the context of hedging strategies discussed?

How has the perception of inflation influenced investor behavior regarding hedging?

Discuss the implications of the correlation breakdown between equities and bonds during high inflation regimes.

In what ways have institutional investors adjusted their hedging strategies in response to market conditions?