Thoughtful Money with Adam Taggart Has The Market Become Blind To Risk? | Lance Roberts & Adam Taggart
Nov 30, 2024
In this discussion, portfolio manager Lance Roberts shares his insights on the current state of credit spreads, revealing that they are tighter than ever, indicating a lack of concern about risk in the bond market. Is the market mis-pricing risk? Roberts evaluates recent inflation and employment data, technical analysis for stocks, and his firm's latest trades. The conversation also touches on market volatility, the importance of vigilant monitoring of credit spreads, and practical investment strategies to navigate potential downturns.
AI Snips
Chapters
Transcript
Episode notes
Market Blindness to Risk?
- Credit spreads are at historic lows, indicating low risk perception in the bond market.
- This implies either an "everything is awesome" scenario or a dangerous market mispricing of risk.
Stock Market Outlook
- Despite recent volatility, the stock market shows signs of continued strength.
- Factors like buybacks and performance chasing suggest a potential "Santa Claus" rally.
Market Predictions and Risk
- Be cautious about market predictions, especially after multiple high-return years.
- Consider potential risks like policy changes affecting corporate profitability and economic growth.