Paul Hodges of New Normal Consulting and publisher of The pH Report returns to Forward Guidance to update viewers on the state of the chemicals and automotive industry. Hodges sees significant overcapacity in chemicals and persistently low price of ethene, propylene, and other chemicals suggests that demand is weakening. Jack asks about whether the fall in inflation in the U.S. economy, which occurred while the labor market and spending stayed strong, indicates that a “soft landing” is a likely outcome in the U.S. or might have even already occurred. Filmed on January 5, 2024.

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Timestamps:

(00:00) Introduction

(26:09) The Bank of Japan Faces A Dilemma

(29:09) Why China's Economy Could Remain Weak For Longer Than Many Expect

(43:25) The Chemicals Market Remains Weak

(55:42) Will The U.S. Continue To Be Immune To Global Slowdown?

(01:09:13) Euphoria In The Stock Market

(01:10:43) Hodges' Concerns About The Bond Market

(01:17:59) Why Can't The Printing Continue?

(01:27:52) The Federal Reserve In 2024

(01:34:12) Why Paul Is The Most Risk Averse He's Ever Been

(01:40:12) Geopolitics

(01:42:05) Green Energy and Electric Vehicles

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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.