Investment Risks in the Hunt for Long-Term Yield

The video discusses the implications of duration risk on growth and inflation, highlighting the challenges posed by demographic changes and technological advancements. It emphasizes the importance of understanding retirement liabilities and investment risks, particularly in a low-interest environment. The discussion also covers the potential impact of deficit spending on the economy, suggesting that strategic investments in infrastructure could be beneficial. The video concludes with an analysis of how the bond market might react to changes in economic policy under new political leadership.

What are some of the headwinds to economic growth mentioned in the video?

• High inflation rates

• Leverage in the global system

• Increased consumer spending

• Rising oil prices

Why do individuals need to save more in the current economic climate?

• Because of high inflation rates

• Due to rising stock market returns

• Due to low income from savings

• Because of increasing job opportunities

What is a significant risk for people between the ages of 60 and 90?

• High housing costs

• Increased healthcare expenses

• Rising education fees

• Decreasing life expectancy

What is a potential benefit of running a higher deficit according to the video?

• Spending on infrastructure

• Increasing consumer debt

• Lowering taxes

• Reducing government spending

What is a concern when increasing the deficit without a clear spending plan?

• It might not improve economic health

• It may lead to higher taxes

• It could decrease employment rates

• It could result in inflation