Goldman's David Kostin Explains Lack of Market Volatility

The video discusses the current state of various markets, focusing on the VIX index and its implications for market volatility ahead of the 2016 election. David Kostin from Goldman Sachs provides insights into economic growth, market valuation, and the potential impact of the election on market expectations. The discussion also covers the consequences of prolonged low volatility, including increased financial leverage and market risks.

What is the VIX index used to measure?

• Corporate earnings

• Commodity prices

• Market volatility

• Interest rates

What is the expected outcome of the 2016 election according to prediction markets?

• Hillary Clinton will be the next president

• The Senate will remain Republican

• Donald Trump will be the next president

• The House of Representatives will become Democratic

How does low volatility affect market leverage?

• It decreases leverage

• It stabilizes leverage

• It has no effect on leverage

• It increases leverage

What is a potential risk of high market valuation?

• Higher commodity prices

• Limited room for market growth

• Decreased corporate earnings

• Increased interest rates

What historical percentile does the market trade at according to the transcript?

• 83rd percentile

• 70th percentile

• 50th percentile

• 97th percentile