Bloomberg Intelligence's 'Equity Market Minute' 3/17/2023

Gina Martin from Adams Financial discusses recent market volatility following the collapse of SVB and Signature Banks. The focus is on the Federal Reserve's potential policy pivot and its impact on markets. Historical data shows that Fed pauses after significant rate hikes often lead to improved equity market performance, except during the 2000 tech bubble. The session concludes with a summary of key points.

What recent events have contributed to the volatility in financial markets?

• The rise of cryptocurrency

• The collapse of SVB and Signature banks

• A new trade agreement

• A major technological breakthrough

Which indices are used to represent volatility in bond and equity markets?

• DOW and NASDAQ

• Nikkei and Hang Seng

• MOVE and VIX

• S&P 500 and FTSE

What potential action by the Fed is being closely watched by the markets?

• A reduction in government spending

• Introduction of a digital currency

• A policy pause after rapid interest rate hikes

• A new round of quantitative easing

How many instances since 1970 have there been where the Fed paused after tightening by at least 100 basis points?

• Seven

• Six

• Five

• Four

In which instance did the equity market not perform well after a Fed policy pause?

• During the tech bubble in 2000

• During the 1997 Asian financial crisis

• During the 2011 European debt crisis

• During the 2008 financial crisis