Bond King Bill Gross Weighs in on Bond Market Selloff

The transcript discusses the potential for a Trump bull market, examining investor reactions to bond sell-offs and stock rallies. It explores the impact of proposed corporate tax changes on profits and the effects of rising interest rates and deficits on market levels. HSBC's predictions for US interest rates are analyzed, with a focus on global influences from central banks like the Bank of Japan and the ECB. The discussion highlights the balance between inflation and market yields, suggesting a neutral level for the next 6 to 12 months.

What is one potential positive effect of the proposed corporate tax changes?

• Increase in corporate profits

• Decrease in corporate profits

• Higher interest rates

• Larger deficits

How might rising interest rates and larger deficits affect the market?

• They stabilize PE ratios

• They decrease PE ratios

• They increase PE ratios

• They have no effect on PE ratios

What is the predicted range for the 10-year yield under President Trump's administration?

• 1.35% to 2.5%

• 2.5% to 3.0%

• 1.0% to 1.5%

• 2.0% to 2.5%

Which central bank is involved in pinning the 10-year JGBs at 0%?

• Bank of England

• Bank of Japan

• European Central Bank

• Federal Reserve

What is the expected effect of inflation on bond yields?

• Inflation will increase bond yields

• Inflation will have no effect on bond yields

• Inflation will decrease bond yields

• Inflation will moderate bond yields