Every Saturday from 10-11 AM on WLS-AM 890

WLS-AM 890 - January 22, 2022 Volatility, the New Normal?

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Episode Thoughts:
  • Stocks have begun to signal widespread investor capitulation as key indices fall below support levels, potentially triggering forced sales.
  • Long-term market and inflation trends indicate lower asset prices as inflationary forces skew the GDP compensation share back toward labor and away from asset owners.
  • Record margin debt and credit card debt combined with low investor cash allocations and reduced personal savings indicate negative retail investor liquidity flows.
  • Weak consumer and business sentiment, falling real incomes, poor Q4 bank earnings, rising initial claims, and China's economic issues point toward an economic downturn.
  • Since supply-side factors support inflation, investors should not expect the Federal Reserve to bail them out again - meaning it could take decades for the stock market to recover if it crashes.
    • ...more
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    Every Saturday from 10-11 AM on WLS-AM 890By Robert M. Kuhn