Business:Investing
Deficit Spending Will Send S&P 500 To 6,000 And Beyond | George Robertson & Mel Mattison on the True Risk-Free Rate and The Fed's Control of The Treasury Market
2024-08-12
Forward Guidance is sponsored by VanEck. Learn more about the VanEck Morningstar Wide MOAT ETF (MOAT) at https://vaneck.com/MOATFG.
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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.
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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
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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.
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