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Real Vision: Finance & Investing

#969 - U.S. Economy: Half Full or Half Empty? With Michael Kao

Feb 7, 2024
Michael Kao, CEO of Akanthos Capital Management, discusses the complexities of economic data for investors and the global market dynamics. Topics include the potential impact of interest rate cuts on controlling inflation, factors affecting the US economy, and the credibility of the Federal Reserve's easing cycle.
36:47

Episode guests

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Quick takeaways

  • The US economy is experiencing a division between the haves, who are asset owners with little to no leverage, and the have-nots, including lower to middle-class consumers with high leverage and floating rate debt, driving the uneven distribution of wealth and economic opportunities.
  • The US may shift towards higher inflation and higher unemployment due to potential reversal of the demographic dividend and the impact of technology-enabled productivity growth.

Deep dives

The Bifurcation of the US Economy

The US economy is experiencing a division between the haves, who are asset owners with little to no leverage, and the have-nots, including lower to middle-class consumers with high leverage and floating rate debt. This internal bifurcation is driving the uneven distribution of wealth and economic opportunities.

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