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The Market Huddle

MH+ Ep.25 Talking Charts (guest: Boris Schlossberg)

Jan 16, 2024
Boris Schlossberg, Managing Director of BKForex, discusses market complacency and interest rates as a macro indicator. They explore underappreciated geopolitical risks like the situation in Israel. The podcast also covers the rotation out of MAG 7 stocks and observations on intraday moves in the market. They discuss Nancy Pelosi's trading strategy, leap call spreads, and the importance of being humble when predicting market trends.
26:06

Podcast summary created with Snipd AI

Quick takeaways

  • Rising interest rates and the impact on the federal budget could hinder economic growth and contribute to a broader market sell-off.
  • Implementing long-term call spread options can reduce exposure to market volatility while offering leveraged upside potential.

Deep dives

Concerns Over Market Danger: A Shift in Outlook

In this podcast episode, Boris Schlossberg expresses his growing bearishness about the market after previously being bullish. He highlights a significant danger he believes many are underestimating: the impact of interest rate servicing on the federal budget. A potential rise in interest rates could lead to a higher percentage of the budget being allocated to interest payments, which in turn could hinder economic growth. He also discusses geopolitical risks, particularly tensions in the Middle East. Boris argues that these factors, along with the overvaluation of stocks like Apple and potential earnings guidance, could contribute to a broader sell-off in the market rather than just a correction in the MAG 7 stocks. He concludes by analyzing the recent behavior of the US dollar, yen, and Bitcoin, suggesting that they may offer insights into market sentiment and potential trends.

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