Expect Increased Market Volatility Next Month, Says Abbot Downing’s Schleif

The video discusses the recent gains in global equity markets, highlighting investor nervousness despite the rally. It explores the role of liquidity and central bank actions in influencing market conditions, particularly as the summer approaches. The potential for increased volatility is noted, with factors such as social media, geopolitics, and lighter trading volumes during vacation periods contributing to market fluctuations. The discussion also touches on the Federal Reserve's impact on market stability and the significance of corporate activities like M&A and share buybacks in supporting equities.

What is one reason for the recent gains in global equity markets?

• Flood of liquidity seeking investment

• Rising interest rates

• Decreased consumer spending

• Increased government spending

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

• Increase in trading volume

• Completion of earnings season

• Stable geopolitical conditions

• Decrease in social media activity

Which factor is NOT mentioned as a driver of news flow during the summer?

• Geopolitical events

• Social media feeds

• Congressional decisions

• Economic data points

What has been supporting equity markets according to the transcript?

• Increased consumer spending

• Government bond purchases

• Corporate M&A activity and share buybacks

• Individual investor purchases

What might lead to a loss of market support in August?

• Increased trading activity

• Corporate executives going on vacation

• Decrease in liquidity

• Rise in interest rates