Maggie Lake Talking Markets Episode 46: GDP, META and MSFT. With Tommy Thornton
Apr 30, 2025
Tommy Thornton, founder of Hedge Fund Telemetry and expert in market analysis, dives into the sharp slowdown of US GDP growth. He discusses the impact this has on investor sentiment and upcoming earnings from tech giants Microsoft and Meta. Thornton shares insights on market volatility, identifies potential opportunities in bear conditions, and emphasizes a cautious approach to investing in tech stocks. He also analyzes the dynamics of gold and Bitcoin amidst current market shifts, providing listeners with valuable strategies to navigate uncertainty.
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Volatility Fueled by Political Uncertainty
- Market volatility is driven heavily by political uncertainty and daily changes in tariff announcements.
- Major fund managers remain cautious, often reducing exposure until clearer signals emerge.
Fed Cuts Don't Guarantee Rally
- Fed rate cuts may occur if unemployment accelerates, but initial cuts usually fail to immediately boost markets.
- Rate cuts are viewed skeptically without accompanying fiscal support reminiscent of COVID-era policies.
Rising Treasury Yields Risk Panic
- The 10-year Treasury yield could rise above 5%, triggering panic due to bank capital requirements and balance sheet stress.
- Sharp increases in yields often lead to significant market and economic repercussions.