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Wealthion - Be Financially Resilient

Stephanie Pomboy: Market Overvalued By 40-50% (Or More)?

Sep 1, 2023
Macro analyst Stephanie Pomboy predicts a painful recession and a substantial haircut of financial assets (~50%) in the coming year. The discussion covers market valuations, the coexistence of inflation and deflation, the relationship between real rates and gold, growing concerns over social issues, signs of a possible recession, analysis of silver, gold, and mining stocks, investing in long-term treasuries, and advice on being cautious and patient in the market.
01:10:39

Podcast summary created with Snipd AI

Quick takeaways

  • The speaker predicts a painful recession ahead and a potential haircut of up to 50% or more for financial assets in the coming year or so.
  • Caution is advised regarding risk assets such as equities and credit, with a preference for US treasuries and longer-term treasuries seen as a potential opportunity.

Deep dives

The likelihood of a major market correction

There is a discussion about the possibility of a significant market correction due to the current overvaluation of stocks and the reliance on debt and demographics as deflationary forces. The speaker mentions the need for a potential "haircut" of significant magnitude and cites the stock market cap to GDP ratio as a metric indicating a potential correction.

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