Please do yourself a favor and watch the video link below. Here are just some of topics discussed.
- Possible end of the 40-year bull in debt, if so a “global depression” threat
- Emerging Market Blowups
- The Yen
- Equity Markey Complacence – Bond Market Reacting to Reality of Higher Interest Rates, Equity Markets Say Prove Hikes Are Coming
- Game of Chicken
- Average age of Senators – No one will stand up to the Fed except Pat Toomey
- Jay Powell knows the damage he did by saving BBB-rated bonds
- Yield Curve Inversions – How Much Time Is There?
- Watch currencies especially in countries importing energy
- Not going to get fiscal stimulus in this mid-term election year.
- Housing wealth effect in reverse
- Violent unwind of the carry trade (Yen and Euro)
- Pension Plan Irony, Pension Plan Risk, Pension Plan Ponzi Schemes
- Fed Pushes Legal Limits
- Monetary policy favors the 1%
- Extends and Pretend on Commercial Real Estate Loans, Midsize Banks Hold this Debt
- Investment ideas: Look for Safe Municipals (not Illinois), Gold, Cash
- Avoid value traps like discretionary spending and healthcare, wary of energy because of huge valuation runups
Two Teaser Quotes
In response to a question about the end of the 40-year bull market in bonds, Booth replied:
“I don’t do hyperbole at all, but if this really is the end, and we really are going to see real rates rise appreciably, then you are talking about a global depression.”
Later in the interview, Booth commented “If you want a front row seat with popcorn, follow the EM [emerging market] space.”
Thanks to Danielle DiMartino Booth and Francis Hunt for an amazingly informative video interview.
…click on the above link to read the rest of the article…