Thoughtful Money with Adam Taggart Despite Economic Green Shoots, Stocks Remain Vulnerable | Michael Kantrowitz
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Feb 11, 2025 
Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, discusses his innovative HOPE framework, assessing economic health amid challenges like housing unaffordability and trade wars. He highlights complexities in the global economy and the impact of Federal Reserve policies on market volatility. Kantrowitz examines trends in housing, emphasizing regional disparities and the rising use of home equity loans. The conversation also navigates the relationship between macroeconomic indicators and stock performance, advocating for cautious investment strategies as 2025 approaches.
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Bifurcated Economy
- The global and US economies have been bifurcated for years, with weakness in certain sectors.
- In 2025, Michael Kantrowitz expects some healing and improved breadth in the US economy.
Improving Weak Sectors
- The Fed's rate cuts and lower commodity prices should help the weaker parts of the economy.
- Smaller businesses and lower-income consumers will benefit most from lower interest rates.
Shifting Liquidity
- Despite tightening, liquidity has been net positive from fiscal policy, and possibly Fed policy.
- A potential concern is the shift in the liquidity environment due to high debt refinancing needs.