Bloomberg Market Wrap 11/27: S&P Dividend Yield, VIX, GDP Forecast

The video discusses the current market dynamics, focusing on the relationship between bonds and stocks, highlighting the declining correlation and the attractiveness of dividend yields over treasury yields. It also examines the VIX index, indicating low current volatility but potential future increases, especially around March. Finally, it covers the Atlanta Fed's improved GDP growth estimates for the fourth quarter, driven by positive data on durable goods and trade deficits.

What is the current trend in the correlation between stocks and bonds?

• The correlation is unpredictable.

• The correlation remains unchanged.

• The correlation is decreasing.

• The correlation is increasing.

Why might it still be attractive to buy stocks over bonds?

• Stocks have lower risk.

• Dividend yields are higher than the 10-year Treasury yield.

• Bonds are more volatile.

• Stocks have a guaranteed return.

What does a steepening VIX curve indicate?

• No change in market conditions.

• Increasing future volatility.

• Stable market conditions.

• Decreasing future volatility.

What recent data contributed to the improved GDP growth estimate?

• Increased consumer spending.

• Positive durable goods orders and trade deficit data.

• Higher interest rates.

• Decreased government spending.

How have net exports affected GDP growth in the latest quarter?

• They have decreased GDP growth.

• They have had no impact on GDP.

• They have contributed to GDP growth.

• They have been a drag on GDP.