Most Market Pullbacks Will Be Bought: iCapital's Amoroso

The video discusses the likelihood of market corrections, noting that a 10% correction is typical annually, while a 5% correction is common quarterly. Despite this, a deep correction is not expected due to strong economic momentum and the Fed's likely pause on rate hikes. Investors are eager to re-enter the market, preventing significant pullbacks. The discussion shifts to rate cuts, initially anticipated due to recession fears, but now seen as a response to declining inflation, which could lead to higher real interest rates. The Fed may cut rates to maintain economic stability without a recession.

What is the average percentage of market correction expected every year?

• 5%

• 10%

• 15%

• 20%

Why might a 10% market correction be considered extended?

• Due to a lack of cash on the sidelines

• Because of strong economic deterioration

• Due to a weak economic momentum

• Because many investors missed the first half of the year

What is one reason why market pullbacks are quickly bought?

• The economy is falling apart

• Investors are expecting a recession

• Investors are looking for a chance to re-enter the market

• The Fed is increasing interest rates

What was the initial reason for pricing in rate cuts earlier this year?

• Expectation of a strong economic growth

• Consensus on an economic landing and possible recession

• High inflation rates

• Increase in real interest rates

What could cause the Federal Reserve to cut rates even without an economic downturn?

• A rise in inflation

• A fall in real interest rates

• Inflation trends down towards 2%

• A strong economic momentum