Join Gary and me as we dissect the current state of the US Stock Market. Dominated by the ‘Magnificent Seven’ tech companies, the S&P 500 has wiped out all its gains for 2023. We explore the consequences of increasing government spending, skyrocketing debt, and the alarming state of market breadth. Tune in as we discuss how this shift from insane to ludicrous spending levels impacts economic growth and the importance of governments investing in real infrastructure for long-term economic prosperity.
We dive into the complexities of the US debt, inflation, and interest rates. With yearly excess spending reaching $2 trillion and an additional $3 trillion of debt set to be monetized, the inflation caused by money supply could result in rising costs of everyday items. Gary describes how the US government is essentially running a Ponzi scheme by printing more money to pay interest on previous debts and why the Federal Reserve’s attempts to raise interest rates may only add fuel to the fire. We also reminisce about the time when Australia had a conservative government that ran a budget surplus and the aftermath of the global financial crisis.
Finally, we shift our focus to strategies for investing in this challenging market. From shorting stocks, buying puts, and investing in commodities like gold, silver, oil, and uranium, to investing in Bitcoin and the Volatility Index, we explore various investment options.
