Thoughtful Money with Adam Taggart
Michael Howell: Peaking Liquidity Suggests A Flat To Down Year Ahead For Stocks
Jan 23, 2025
Michael Howell, the Founder and CEO of Crossborder Capital, dives into the intricate world of global liquidity and its sway over financial markets. He shares insights on the mixed economic landscape, highlighting growth in the US versus challenges in China. Howell emphasizes the cyclical nature of liquidity, warning of potential downturns ahead for stocks. He also discusses the implications of rising debt and Federal Reserve policies on asset classes and offers thoughts on gold's future in the market.
01:14:17
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Quick takeaways
- Michael Howell emphasizes that peaking liquidity suggests potential for flat or declining stock returns after recent gains.
- The mixed global economic landscape shows positive growth in the U.S. while China faces severe economic challenges affecting the market.
Deep dives
Potential Market Correction Ahead
There is speculation about a possible correction in the markets after a long-term uptrend. The current outlook suggests lower returns on risk assets, especially following substantial gains in the previous year, with the S&P and gold both rising 25%. Analysts indicate that while gold might continue to perform well, the S&P is expected to either remain flat or decline slightly in value. This perspective raises questions about market sustainability and whether recent high returns can be maintained moving forward.
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