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Decoding Market Disconnects with Michael Gayed

Wealthion - Be Financially Resilient

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The Stock Market as a Discounting Mechanism

This chapter explores whether the stock market truly reflects the future or if it is more based on the present. It discusses the concentration in a select number of stocks which may be a sign of a potential bear market and highlights the importance of small caps and mid-caps in indicating the future state of the economy. The chapter cautions against viewing the S&P as a discounting mechanism of the future and discusses the effects of past rate hikes.

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