Thoughtful Money with Adam Taggart Stephanie Pomboy: "We're Not Out Of The Woods", This Is A Rally To Be Sold
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Jun 11, 2025 
Stephanie Pomboy, a renowned macroeconomic strategist and market analyst, shares her insights on the current economic climate and why she believes recession risks are underestimated. She warns investors to consider selling into the existing stock rally, highlighting troubling signals like rising bankruptcies and consumer stress. The conversation touches on how evolving trade policies impact corporate profits and consumer confidence, as well as the looming threat of a credit crisis due to rising interest rates. Pomboy emphasizes the importance of financial literacy and smart asset allocation.
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Stock Rally Is A Sell Signal
- Stephanie Pomboy sees the current stock market rally as a temporary move to sell into, not the start of sustained growth.
- She emphasizes fundamentals like interest rates and tariffs still pose significant headwinds to growth.
Interest Rates' Lagged Economic Impact
- Pomboy highlights the lag effect of higher interest rates hurting economic growth, evident in rising bankruptcies and consumer credit stress.
- Consumer financial health is deteriorating despite mixed employment data, signaling economic challenges ahead.
Labor Force Data Is Suspicious
- The reported drop in labor force conflicts with rising consumer financial stress and very low quits rate.
- This suggests data anomalies or other unaccounted factors, undermining confidence in headline employment statistics.