Stocks Are Cheap Right Now Relative to Inflation: Canaccord's Dwyer

The video discusses recent market movements, highlighting a breakout despite a rise in bond yields. It examines stock valuations in relation to inflation and interest rates, suggesting stocks are cheap unless a recession occurs. The likelihood of a recession is considered low due to stable credit markets, despite falling Treasury yields. The video emphasizes the importance of differentiating between Treasury and corporate bond markets when assessing economic signals.

What recent change in the bond market has affected defensive stocks like utilities and telecoms?

• A decrease in the 10-year bond yield

• An increase in the 10-year bond yield

• A decrease in corporate bond yields

• An increase in short-term interest rates

How are stocks currently valued in relation to inflation?

• Overvalued

• Moderately expensive

• Very expensive

• Cheap

What is the average market trading multiple when core inflation is between 1% and 3%?

• 15 times earnings

• 21 times earnings

• 17 times earnings

• 19 times earnings

Why is the risk of a recession considered low according to the transcript?

• Strong corporate earnings

• High levels of consumer spending

• Absence of credit stress

• Rising interest rates

What is the difference between Treasury and corporate bonds in the current market context?

• Both are rising

• Both are declining

• Treasurys are declining, corporates are stable

• Treasurys are stable, corporates are volatile