Investors Prepare for Rate Cuts by Betting Big on Safe Bonds

The video discusses the ongoing trade tensions between the US and China, and how these tensions are influencing expectations for Federal Reserve rate cuts. It highlights the anticipation of rate cuts by the December meeting, with a focus on the September meeting projections. The video also explores the bond market, noting a shift towards longer-duration bonds as investors seek safe havens amid economic uncertainty.

What is the expected total rate cut by the Federal Reserve by December?

• 25 basis points

• 50 basis points

• 75 basis points

• 100 basis points

How many rate cuts are anticipated by the Federal Reserve for the September meeting?

• Three rate cuts

• Two rate cuts

• No rate cuts

• One rate cut

What is the potential basis point cut that some people expect next month?

• 100 basis points

• 75 basis points

• 50 basis points

• 25 basis points

Which type of bonds have seen steady inflows due to the current economic conditions?

• Short-term bonds

• Medium-term bonds

• Corporate bonds

• Longer-duration safe haven bonds

What is the main risk associated with the increased demand for longer-duration bonds?

• Liquidity risk

• Duration risk

• Credit risk

• Inflation risk