Plurimi Wealth's Armstrong Still Sees a 'Hawkish Fed'

The video discusses market volatility, focusing on equities' response to a hawkish Fed. It analyzes interest rate spreads, highlighting the low implied volatility and potential for steepening. The S&P 500's valuation is examined, noting its high price-to-book ratio and potential headwinds from wage growth and interest rates. The video concludes with an economic outlook, suggesting that current market corrections are healthy and questioning the Fed's role in asset inflation.

What is the significance of the 2-10 year spread reaching zero?

• It shows an increase in equity prices.

• It suggests a decrease in market volatility.

• It indicates a potential steepening of the yield curve.

• It reflects a stable economic environment.

How does the current valuation of the S&P 500 compare to historical levels?

• It is at its cheapest in the last 30 years.

• It is trading below its median over the last 30 years.

• It is more expensive than it was at the end of September.

• It is cheaper than during the tech bubble of 2000.

What potential headwinds are mentioned for the S&P 500?

• Wage growth and higher interest rates.

• Stable profit margins and high revenue growth.

• Increased consumer spending and low inflation.

• Decreasing interest rates and deflation.

What is the speaker's view on the current market correction?

• It is healthy and should not cause the Fed to pause.

• It is unnecessary and should be avoided.

• It is a sign of an impending market crash.

• It indicates a need for more quantitative easing.

How does the market's reliance on central banks affect asset prices?

• It makes them undervalued and stable.

• It causes them to be overinflated and expensive.

• It leads to a decrease in market liquidity.

• It results in a balanced and fair market.