Investors Taking Shortest Route Out of Markets on Virus News: Economist

Investors Taking Shortest Route Out of Markets on Virus News: Economist

Assessment

Interactive Video

Business

University

Hard

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The video discusses the current market uncertainty, highlighting the lack of knowledge about the severity and spread of economic issues, particularly in China. It explains how investors are reacting by reducing risk and taking profits, despite not knowing how long the market downturn will last. The discussion also touches on the concept of market corrections and the potential for a bear market, questioning whether investors have become immune to these phenomena. Finally, it examines the role of central bank liquidity in sustaining markets and the absence of significant shocks that could lead to a market collapse.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways have market fundamentals changed according to the speaker?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the speaker suggest about the future of equities in the absence of significant shocks?

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