Quadratic Capital CIO on Markets, Strategy

The video discusses the current state of inflation expectations in the US, highlighting the gap between realized inflation and future expectations. It examines the impact of currency movements on inflation and introduces the Eyeball ETF as a tool for inflation hedging. The discussion also covers the sensitivity of tech stocks to interest rates and the role of bonds in diversifying investment portfolios.

What is the current state of future inflation expectations in the US compared to realized inflation?

• Future expectations are not considered in the market.

• Future expectations are much lower than realized inflation.

• Future expectations are higher than realized inflation.

• Future expectations match realized inflation.

How does a weak US dollar potentially affect inflation?

• It stabilizes inflation.

• It could increase inflation.

• It has no effect on inflation.

• It decreases inflation.

What is the primary purpose of the IVOL ETF?

• To track the stock market.

• To provide high-risk investment opportunities.

• To invest in foreign currencies.

• To hedge against inflation and interest rate volatility.

What is a key feature of the IVOL ETF?

• It avoids treasury investments.

• It includes interest rate options for diversification.

• It uses a single index for inflation.

• It only invests in equities.

What are the two main purposes of bonds in an investment portfolio?

• To hedge against currency fluctuations.

• To focus solely on equity growth.

• To increase risk and volatility.

• To provide income and diversification.

How does interest rate volatility serve as a diversifier in a portfolio?

• It provides a different type of volatility.

• It focuses on short-term gains.

• It reduces the need for bonds.

• It mimics equity volatility.

Why might investors look at historical data from the 70s for guidance?

• Because interest rate markets were well-developed then.

• To avoid using bonds in portfolios.

• To understand how markets reacted to high rates.

• To find modern investment strategies.