KKR's McVey: Market Selling Off in Anticipation of Fed

The video discusses how the market is reacting to the Federal Reserve's actions, particularly in areas of speculation like growth stocks, IPOs, crypto, and SPACs. It highlights the Fed's focus on the mortgage market amidst high housing prices and questions the necessity of their current buying strategy. The video also examines the Fed's balance sheet expansion and its implications in a strong economic environment with vaccines and stable savings.

What areas of speculation is the Federal Reserve targeting to deflate?

• Real estate and bonds

• Growth stocks, IPOs, crypto, and SPACs

• Commodities and foreign exchange

• Gold and silver

What percentage of the NASDAQ is down by 40% or more?

• 10%

• 25%

• 50%

• 75%

Why is the Federal Reserve considering changes to its mortgage market strategy?

• Because housing starts are at a 15-year low

• Due to a decline in economic growth

• Because housing starts are at a 15-year high and prices are up 20% year over year

• Due to a decrease in home prices

What is the difference between the Fed's asset purchases and rate increases?

• Asset purchases increase financial conditions, while rate increases decrease them

• Asset purchases and rate increases both tighten financial conditions

• Asset purchases are unrelated to financial conditions

• Asset purchases are a form of tightening, while rate increases are a form of easing

How much has the Fed's balance sheet increased?

• From 2 trillion to 4 trillion

• From 4.2 trillion to almost 9 trillion

• From 5 trillion to 10 trillion

• From 3 trillion to 6 trillion