Bit of Shades of 2018 Rout Coming: Medley Global's Emons

The video discusses the impact of bad news on market sentiment, particularly in the context of the ongoing trade war. It examines how markets have priced in these events, the signals from the bond market, and the potential for a recession. The role of central banks, including the Federal Reserve, in mitigating economic slowdown through rate cuts and quantitative easing is explored. The importance of a trade war resolution for market confidence is highlighted, along with the challenges of liquidity conditions and financial strain as the year-end approaches.

What is one of the main concerns highlighted in the US economy due to the trade war?

• Growth in export activities

• Degeneration of the services sector

• Increase in service sector jobs

• Rise in manufacturing output

How has the bond market reacted to the trade tensions between the US and China?

• By showing strong growth

• By remaining unaffected

• By signaling a negative impact

• By increasing interest rates

What is considered a crucial factor for improving market sentiment according to the discussion?

• Increase in interest rates

• Trade war resolution

• Rise in inflation

• Decrease in unemployment

What is the expected impact on the EU curve if a recession occurs?

• It will invert

• It will steepen

• It will remain unchanged

• It will flatten

What action is the Federal Reserve taking to address funding stress in the markets?

• Reducing quantitative easing

• Selling government bonds

• Reinvesting reserves

• Increasing interest rates

What is one of the geopolitical events mentioned that could add to market uncertainty?

• Economic reforms in India

• Elections in Canada

• Protests in Hong Kong

• Trade talks in Europe

What is the potential outcome if the trade war continues without resolution?

• Further tightening of financial conditions

• Increase in global trade

• Decrease in geopolitical tensions

• Stabilization of market conditions