Please help with an Interview question

How would you answer this question:

How are the markets currently doing? Please explain your answer from a Macro and Micro perspective.
Also, what is the yield curve looking like?

I know for a fact, I'm going to get asked the above mentioned question at my interview this week and would really appreciate any of your answers.

 
Best Response

From a macro perspective, the economy would still grow at a moderate rate which is helped by a decline in commodity prices but also held back by the rising dollar, the devaluation of the Chinese currency and the gradual increase in rate. On a micro level, it is less clear because we have still to see the impact of the rising dollar on domestic companies,which should affect payroll . But as it stands the decline in commodity should help consumption,especially with the increase in dollar. This all translate to my view that the yield curve would look upward sloppy in the near future, in my perspective. PS: My perspective might be wrong so dont hold me on this; this also assumes you are from the US. Got this question from goldman and I bombed because I was just too scared and not ready . Good luck

 

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