BONUS: An Update with Dr. David Kelly, Chief Global Strategist of J P Morgan Asset Management: On Predictions, Rising Wealth Inequality the Inflation "Eiffel Tower" and More

As a special treat in the run up to the release of Series 5 we are delighted to bring you this additional conversation with Dr. David Kelly, Chief Global Strategist of J P Morgan Asset Management. Our conversation is filled with Dr. Kelly's trademark turns of phrase and is a relatable tour through market dynamics. We start by asking why so many market pundits got the recent market strength wrong and were premature in predicting a recession in 2023. We examine whether some of the older and traditional market indicators are still fit for purpose and ask what to use in replacement. In analyzing the shape of inflation trends he invokes the shape of the Eiffel Tower - steep inclines followed by a symmetrically steep decline on the opposite side of the peak, and think about the future path for inflation. Moving then to interest rates we interrogate the "higher for longer" narrative and whether it can stand, and look at the likely path of interest rates, with a sidebar of a discussion around the likely shape of any coming distressed cycle and what central banks are really good at doing. We move then to the the hot topic of AI, ask whether it is a hype cycle and whether AI is one of those things that really will change our lives. This takes us to compare the US market to China, India and other markets and we look at whether a diversified approach to equity investing is supportable today. We end on an intriguing discussion of the role that low interest rates have played in rising wealth inequality and how these disparities both get to the underlying distress among some consumer segments and the potential for political surprise. This is another whistlestop tour through the issues of our time. Please enjoy.