Josh Sigurdson talks once again with Lior Gantz of Wealth Research Group to talk about several of the top market and monetary stories of the day!
First, we dig into the recent red share prices of banks across the board. Following JP Morgan going in the red year to date, every major bank is seeing the same. Deutsche Bank is laying off 10,000 employees which is about 1 in 10 of their total workforce. Lior talks about how we’re seeing the symptoms of the fractional reserve banking system and what he believes it’ll result in ove rthe coming years.
As for risks, Lior says the biggest risk we see today is the fact that if the Federal Reserve raises rates 4 or 5 more times, it will result in a recession as it always has historically.
When the Federal Reserve tightens financial policy, raises rates, at some point, the Fed fund rate catches up to the ten year treasury. Every time this happens, the economy dramatically slows down, lay offs happen, the stock market goes down significantly and we are then left with a massive recession.
Lior goes into the demographic cliff as the concerns rise regarding baby boomers taking their money out of the stock market while millennial have far less money and simply can’t mimic the power of baby boomers.
Lior’s views however going over the next 12 years is a little bit different from most of ours. He believes the decade of 2020 to 2030 will be the best decade for the stock market, mainly pointing out that there are more job openings than unemployed, though we cannot go without taking the labor force participation rate into consideration as many unemployed are hidden in the LFP.
Lior also goes into Wealth Research Group’s success predicting the bull run of Ethereum and Dash. He goes into his thoughts on the most undervalued asset class and how incredibly transformative the decentralized blockchain space is for the markets.
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