Forward Guidance is sponsored by VanEck. Learn more about the VanEck Morningstar Wide MOAT ETF (MOAT) at https://vaneck.com/MOATFG.
--
This interview with George Robertson and Mel Mattison explores why deficit spending will send stocks and risky assets higher. We also discuss the true risk-free rate and the Federal Reserve’s control over the Treasury Market, nominal GDP’s relationship to interest rates, and stock market valuations that could lead to a collapse in 2027.
__
Follow George Robertson on Twitter https://x.com/BickerinBrattle
Follow Mel Mattison on Twitter https://x.com/MelMattison1
Follow VanEck on Twitter https://x.com/vaneck_us
Follow Jack Farley on Twitter / jackfarley96
Follow Forward Guidance on Twitter / forwardguidance
Follow Blockworks on Twitter / blockworks_
__
Timestamps:
(00:00) Introduction
(01:26) Why George Robertson Is Bullish
(04:12) Are Fiscal Deficits Juicing the Economy?
(05:43) Impact Of Passive Fund Flows On The Market
(09:33) Unemployment And The Labor Market
(13:22) Government Spending And The Economy
(20:16) GDP Is Booming
(21:13) VanEck Ad
(26:40) The Fed Is Looking For A Reason To Cut Rates
(30:47) Are Higher Rates Stimulating The Economy?
(35:46) Nominal GDP And Interest Rates
(52:18) How The Fed Controls The Yield Curve
(56:47) Rates Are Artificially Low
(01:18:05) How The Fed Manipulates Treasury Rates
(01:29:15) Market Distortions Pushing Risk Assets Higher
(01:34:09) Stock Market Boom, Earnings & Valuations
(01:59:54) Market Bubble Will Eventually Collapse
(02:03:26) Reforming Entitlement Spending
(02:08:36) The US Will Solve All Problems
(02:15:34) The Ticking Time Bomb Of US Debt
(02:24:07) How The 2024 Election Impacts The Economy
(02:30:26) Learn More About George And Mel's Work
(02:32:15) Thoughts On Small Caps
__
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.