Wealthion - Be Financially Resilient
The Real Risk for Markets Isn’t Tariffs: It’s Japan! | Michael Gayed
Mar 31, 2025
Michael Gayed, a Portfolio Manager and Publisher of the Lead Lag Report, dives into the overlooked risks threatening markets. He argues that investors are fixating on tariffs while Japan's monetary policies could trigger a global credit event. Gayed highlights the stagnant state of small caps, the illusion of mega-cap strength, and the disconnect with junk debt. He suggests gold may not be the safe haven it once was and emphasizes the need to rethink market signals for better investment strategies.
43:15
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Small-cap stocks are crucial indicators of economic health, yet their prolonged underperformance signals potential risks for investors focused on large caps.
- Japan's monetary policy and the reverse carry trade raise significant concerns about global financial stability, overshadowing the impact of tariffs on market dynamics.
Deep dives
The State of Small Caps and Market Risk
Small-cap stocks are integral to understanding the true health of the U.S. economy, as they represent the backbone of economic activity and employment. The podcast highlights that despite their importance, small caps have struggled over the last decade and have largely been overlooked in favor of large-cap stocks, which have dominated market sentiment. This divergence raises concerns about the risks inherent in relying on large-cap performance as a gauge of overall market health. As small caps continue to lag, a significant risk emerges: if market sentiment shifts, the downside could be severe for investors focused solely on large caps.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
