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Wealthion - Be Financially Resilient

Is A Global Margin Call In the Making? | Michael Gayed

Aug 16, 2023
In this episode, Michael Gayed, who conducts interviews on Twitter Spaces, discusses the possibility of a global margin call, predicting volatility dynamics with the lead lag framework, the performance of defensive sectors, the expectation of a recession in 2023, the risks of leverage and zero-days to expiration trading, and the role of content generation and marketing in career success for investors.
01:20:02

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Housing affordability is worsening, creating uncertainty in the market
  • Investments like utilities, treasuries, the dollar, and gold provide a balance between defense and potential returns in uncertain market conditions

Deep dives

The Potential Inflation Hedge of Housing

The housing market has seen some interesting dynamics. Despite high home prices and mortgage rates, housing affordability is worsening, causing some uncertainty. The market is experiencing a standoff between buyers and sellers, with both sides waiting for the other to make a move. However, organic transactions still occur due to life events like death, divorce, or job changes, and these transactions can shape price discovery. If sellers start fearing a market downturn, they may sell, leading to a potential flood of inventory. Additionally, factors like the reversal of the carry trade and the increasing popularity of zero DTE options trading contribute to market uncertainty. As a data-driven analyst, caution is advised, and assets like utilities, treasuries, the dollar, and gold are considered more appropriate for this environment.

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