Episode Details

We've been seeing the stock market stuck in neutral so right now we're focusing on rising inflation, interest rates, government debt, and growing risks across the economy and financial markets. Today we talk the Fed's unanimous 25-basis-point rate hike alongside our concerns about the persistent inflation we've been seeing. We also discuss why bonds are becoming more attractive for income, and the difference between high inflation and hyperinflation. We also explore the media sensationalism and how it can distort perceptions of risk and seasonal market patterns around the coming midterm elections.

We discuss...

• How inflation, economic growth, and currency devaluation could be used to reduce the burden of the massive national debt.
• The potential impact of higher inflation on asset owners, real estate, debt, and investment returns was explored.
• The difference between high inflation and hyperinflation was explained, along with why hyperinflation is viewed as unlikely in the U.S.
• Why bonds have become more attractive for retirement income as yields have risen.
• Media sensationalism and the way news coverage can distort perceptions of risks such as terrorism, crime, COVID, and other causes of death were examined.
• Growing market concentration and unusually high household exposure to equities were highlighted as potential sources of market fragility.
• Weakening real consumer purchasing power as inflation continues to outpace wage growth.
• Rising national debt and the rapid pace of additional borrowing were examined as growing long-term economic concerns.
• Historical market seasonality around midterm elections and the tendency for markets to strengthen later in the year.
• The Nasdaq's sideways performance, the Russell 2000's recent weakness, and potential opportunities in small-cap stocks.
• Gold and silver as markets that may require patience following periods of strong performance and consolidation.
• Bitcoin and the hosts' differing levels of confidence in various cryptocurrencies, including XRP.
• Rising 30-year mortgage rates and their potential impact on housing affordability and home prices.
• The housing market is increasingly strained by high mortgage rates, elevated home prices, declining buyers, and rising listings.
• Investors should remain cautious and pay attention to market signals rather than assuming current calm conditions will continue.

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | Mergent College Advisors

Follow on Facebook:

Listen Now