Ares Capital's DeVeer Is More Worried About Valuations Than the Economy

The video discusses the recent volatility in US markets, driven by expectations of interest rate increases and economic growth. It highlights the impact of these changes on equity and high yield markets, as well as the credit market's response to yield curve shifts. The speaker emphasizes the importance of understanding these dynamics for investment strategies, noting that while economic indicators are positive, there are concerns about high valuations and risk-taking behaviors encouraged by low rates.

What was the state of the US markets before the holiday break in January?

• Rapidly declining

• Unpredictable

• Consistently rising

• Highly volatile

What is the expected impact of a gradual increase in rates on market volatility?

• It will eliminate volatility

• It will cause extreme market swings

• It will have no impact

• It will create some volatility

How does the speaker view the potential rise in the 10-year Treasury yield to four and a half percent?

• As beneficial for growth

• As a minor issue

• As a major concern

• As irrelevant

What is the effect of a flattening yield curve on economic growth?

• It promotes growth

• It has no effect

• It discourages growth

• It accelerates growth

What is the speaker's main concern regarding the current economic environment?

• High valuations

• Low employment rates

• High inflation rates

• Low interest rates