Fedeli: No Better Time to Invest in Fixed Income

The video discusses the uncertainty in inflation numbers due to changes in the basket and its impact on markets, particularly equities. It explores the bond market's resilience amidst volatility and suggests a strategic approach to multi-asset portfolios. The discussion highlights the importance of tactical moves in equity markets, focusing on sector performance and dispersion. It also covers the FX market, particularly the Dollar-Yen pair, and Japan's economic policy, anticipating changes in yield curve control.

What is a potential consequence of a more than 0.5% month-to-month increase in inflation?

• It would be welcomed by equity markets.

• It would likely be disliked by equity markets.

• It would have no impact on the markets.

• It would lead to a decrease in interest rates.

How has the bond market performed in the face of a more hawkish Fed?

• It has lost all its gains.

• It has held on to its gains year to date.

• It has outperformed the equity market.

• It has remained stable with no gains.

What is a key strategy for making alpha from an equity standpoint?

• Investing in bonds only.

• Ignoring market dispersion.

• Taking advantage of dispersion within sectors.

• Focusing solely on international markets.

What is the expected outcome of the wage negotiations in Japan?

• Lower than expected results.

• Higher than expected results.

• No change in results.

• A decrease in inflation targets.

What is the Bank of Japan's target for core inflation?

• 4%

• 1%

• 3%

• 2%