The Meb Faber Show - Better Investing JP Morgan's David Kelly - Spread Out or Miss Out: The Urgent Case for Diversification | #557
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Nov 8, 2024 Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, shares his insights on current economic themes. He explores the paradox of strong consumer spending against low confidence and the tension between stocks and gold. Kelly emphasizes the importance of diversification amidst concerns over the U.S. dollar and government deficit. He also highlights emerging market opportunities, especially in India and China, and discusses the cultural influences on investment behaviors across the globe.
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Inflation is Transitory
- The US economy isn't inflation-prone.
- Inflation spiked due to the pandemic, policy responses, and Ukraine, but underlying economic factors suggest it will return to 2%.
Consumer Spending
- US consumers are optimistic and willing to spend.
- Real consumer spending is growing, driven by wealth gains and rising real wages.
Consumer Sentiment Paradox
- Consumer sentiment is low despite positive economic indicators.
- This is due to wealth inequality, prolonged elections, and fear-mongering media.