Northern Trust's Nixon: Expect Volatility to Pick Up

The video discusses the current state of the stock market in relation to interest rates, noting that while the market seems expensive historically, it is appropriately priced given low interest rates. It highlights recent low volatility in the market, predicting an increase over the summer. The GDP data shows a slight revision, indicating a weak first quarter similar to last year, with expectations of continued tepid growth. Despite robust job growth, the economy remains in a trend channel with no clear catalyst for change. The consumer plays a significant role in GDP, but achieving the Fed's growth target remains challenging.

What is the current state of the stock market in relation to interest rates?

• The stock market is undervalued.

• The stock market is overvalued.

• The stock market is unpredictable.

• The stock market is priced about right.

What is expected to happen to market volatility in the coming months?

• Volatility is expected to disappear.

• Volatility is expected to increase.

• Volatility is expected to remain stable.

• Volatility is expected to decrease.

How did the US GDP perform in the first quarter compared to expectations?

• It was not measured.

• It was below expectations.

• It met expectations.

• It exceeded expectations.

What is puzzling about the current economic environment?

• The lack of job growth.

• The decline in consumer spending.

• The robust job growth despite tepid economic growth.

• The rapid economic growth.

What is the role of consumer spending in the current GDP equation?

• It has no impact.

• It is decreasing.

• It is minimal.

• It is carrying a heavy load.