Macro Voices MacroVoices #422 Larry McDonald: How To Listen When Markets Speak
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Apr 4, 2024 
Larry McDonald, founder of Bear Traps Report, discusses gold's broken correlations, inflation outlook, energy, and more with hosts. They explore market indicators, trends, potential stagflation, energy crisis, geopolitical impacts, copper vs. aluminum, US-China relations, silver investments, and market forecasts.
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Gold Decoupling
- Gold's inverse correlation with the dollar and interest rates has broken down.
- The market anticipates the Fed's limited ability to hike rates due to inflation and regional bank instability.
Oil, Rates, and Banks
- Rising oil prices exacerbate pressure on regional banks due to their commercial real estate exposure.
- Higher oil leads to higher rates, hindering the Fed's ability to hike, stressing regional banks.
Global Economy and US Consumers
- The global economy's surprising strength, including overbought European banks, pressures inflation.
- The US consumer base is bifurcated, top 20% doing well while bottom 60% struggle, influencing Fed policy.