Fed Rate Hike Factored in, Statement Is in Focus, Axioma Says

The video discusses the Federal Reserve's potential interest rate hikes and their impact on markets, including bond markets and inflation. It explores investor strategies, market movements, and the debate on the 10-year yield. The role of liquidity in asset correlations and portfolio risk is also examined.

What is the primary concern for investors regarding the Federal Reserve's actions?

• The alignment with the IMF

• The impact of the trade war

• The number of rate hikes this year

• The telegraphing of moves

How are investors reacting to the current bond market conditions?

• By maintaining their investment thesis

• By selling all risk assets

• By ignoring credit default swaps

• By completely avoiding inflation-linked bonds

What is the ongoing debate in the bond market?

• Whether equities will outperform bonds

• Whether the BoJ will increase interest rates

• Whether the ECB will stop pumping liquidity

• Whether the 10-year yield will rise above 3%

What is causing the seesaw effect in asset class correlations?

• Decreasing interest rates

• Large liquidity movements

• High inflation rates

• Stable global growth

Why is there no significant change in the overall portfolio risk number?

• Because all asset classes are positively correlated

• Because of the balance between positively and negatively correlated asset classes

• Because investors are not changing their investment thesis

• Because the Fed has not announced any new rate hikes