Joseph Wang: Bonds Will Be Crushed By Stocks As Fiscal Deficits Reignite Inflation
On today's episode, Former Fed trader, CIO at Monetary Macro & Author Joseph Wang joins the show to discuss his outlook for 2024.
Joseph walks through his stock market "crack up boom" thesis, the rise of fiscal dominance & the path ahead for bonds as the U.S runs record high deficits. We then deep dive into the Fed's QT program, the reverse repo outlook as well as broader financial plumbing and how it may impact markets in the year ahead. To hear all this & more, you'll have to tune in!
Today’s interview is sponsored by Public. Add fixed income to your portfolio with corporate, Treasury, and municipal bonds. Go to https://public.com/forwardguidance to get started.
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Timestamps:
(00:00) Introduction
(00:33) Disinflation Is Transitory
(07:48) Record Deficits Will Fuel A Stock Market Rally In 2024
(11:34) The Fed Will Cut Rates Three Times In 2024
(16:33) Why Isn't The Fed Pushing Back Against Market Pricing?
(19:22) Fading The Recessionista's
(23:25) The U.S Dollar
(26:52) Quantitative Tightening
(35:45) The Reverse Repo
(46:32) Mortgages Role In The Fed's QT
(54:39) Housing
(01:01:10) The Rise Of Fiscal Dominance
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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.