Bonds, Equities to Stay Disconnected for an ‘Extremely Long Time’: JPM

The video discusses the dynamics of managed currencies, particularly in the context of US concerns over currency manipulation. It suggests that in uncertain times, such currencies are more neutral assets. The discussion shifts to how bearish views on trade situations should be expressed through equities rather than currencies. Finally, it addresses the disconnect between bonds and equities, highlighting that this may persist due to central banks' focus on inflation targeting, leading to different trajectories for these financial instruments.

What is the primary reason the currency discussed is considered a neutral asset?

• It is highly volatile.

• It is not influenced by trade agreements.

• It is a managed currency.

• It reacts strongly to news.

How should one express bearish sentiments on trade situations according to the video?

• By investing in bonds.

• Through currency trading.

• Through the equity market.

• By holding cash reserves.

What is expected to happen to the relationship between bonds and equities?

• They will remain disconnected for a long time.

• They will start tracking each other soon.

• They will both decline simultaneously.

• They will both rise simultaneously.

What is the Fed's focus that contributes to the disconnect between bonds and stocks?

• Interest rate hikes.

• Average inflation regime targeting.

• Currency manipulation.

• Trade agreements.

Why might central banks not tighten policies when the global economy recovers?

• Due to high inflation rates.

• Because of a focus on currency stability.

• To maintain the disconnect between bonds and stocks.

• Because of the average inflation regime targeting.