Rise in 10-Year Yield Would Be Game Changer: Amoroso

The video discusses the impact of rising 10-year yields on risk assets, highlighting how inflation and growth expectations influence these yields. It compares inflation rates in the US and UK, noting the Fed's proactive measures in the US. The discussion concludes with the Fed's strategy and its implications for global equity allocation, emphasizing the prioritization of US equities.

What was one of the main reasons for the tech rally earlier this year?

• Rise in unemployment rates

• Decrease in consumer spending

• Increase in short-term interest rates

• Decline in 10-year yields

How have recent changes in growth expectations affected the 10-year yield in the US?

• They have driven the yield from 3.4% to 3.7%.

• They have caused the yield to decrease significantly.

• They have stabilized the yield at 3.4%.

• They have had no impact on the yield.

What could cause a problem for risk assets according to the discussion?

• Entrenched inflation expectations

• A sudden drop in consumer confidence

• A rise in unemployment rates

• A decrease in global trade

How does the UK's inflation rate compare to its equivalent Fed funds rate?

• The inflation rate is lower than the Fed funds rate.

• The inflation rate is not mentioned in the discussion.

• The inflation rate is equal to the Fed funds rate.

• The inflation rate is higher than the Fed funds rate.

Why might global investors prioritize US equities according to the discussion?

• Because of the US's high unemployment rate

• Due to the US Federal Reserve's proactive measures

• Because of the US's strong currency

• Due to the US's lower inflation rate compared to the UK