The Capitalist Investor - Episode 161 Welcome back! The Capitalist Investor squad discusses all the news surrounding the biggest minds on Wall Street & Politics at Davos 2023. What are CEO’s saying around the world? What is Labor Hoarding? Jeffrey Gundlach had a great interview on Fox Business last week. What’s the biggest takeaways from the bond king himself? Why are we debating gas stoves & electric stoves? All of this is discussed & more this week on The Capitalist Investor.Davos & Labor HoardingOver 70% of CEO’s are concerned for the next year with a global slowdown possibly approaching. On top of that, over 60% of economists view a slowdown over the next year. This comes at a time when the labor continues to be resilient. So what is the next shoe to drop? One of the hottest takes recently is this idea around “Labor Hoarding”. Companies got concerned over the past few years about losing employees & maintaining their good talent & performing employees. With things like the great resignation and big firms on Wall Street gaining market share from small business, companies are resilient to laying off employees. Has this happened before in history where even in a downturn, companies were more willing to keep employees and weather the storm rather than let employees ago? With commentary around Davos the past few days, we can gain some insight on what that means for the economy & your portfolio.Market Takes & Jeffrey GundlachThere’s many reasons for the stock market to go lower. There’s also many reasons for the stock market to go higher. What’s the recent takes on both sides of the equation? Throughout history, the bond market has been much smarter than the stock market at predicting the future. Jeffrey Gundlach had a lot of to say around the future outlook of the economy and the Federal Reserve. One of his comments is around the 60/40 portfolio and how it could’ve changed to a 40/60 portfolio with the discount around bonds the past year. Bonds sold off almost as much as stocks did last year. Another point Jeff made was around the 10-year treasury note being close to 4% while the Fed Funds Rate is near 5%. Usually, the 10-year treasury sheds light on the future of interest rates. If you look to history, that would suggest the Federal Reserve would be looking to lower interest rates soon closer back to 4%. But, is this time different? Especially with the Federal Reserve losing it’s credibility over the past few years with inflation being “transitory” in their mind, even though it wasn’t? All of this is debated.Gas Stoves vs. Electric StovesOkay… really? Gas stoves & electric stoves have become political. What is really happening when things such as the stove in your house becomes political? Does it shed some light on the polarization & divisiveness in our country, or are gas stoves really environmentally unfriendly? Climate change is on the top of discussion, especially at Davos 2023. What do you need to do about these agenda’s that are being pushed and ultimately, does it impact your portfolio? Connect With Mark TepperTwitter: @MarkTepperSWPFollow Mark on LinkedInSend Mark a message hereThe SWP Connect YouTube ChannelConnect With Ryan DobrokaTwitter: @DobrokaRyanFollow Ryan on LinkedInSend Ryan a message hereThe SWP Connect YouTube ChannelConnect with Derek GabrielsenTwitter: @DerekGabrielsenFollow Derek on LinkedInSend Derek a message hereCheck out Derek’s YouTube channel!Connect With Luke LloydTwitter: @LloydBoyLukeFollow Luke on LinkedInSend Luke a message hereThe SWP Connect YouTube ChannelConnect with Tony ZabiegalaTwitter: @TonyZabiegalaFollow Tony on LinkedInSend Tony a message hereThe SWP Connect YouTube channel!Send your questions and comments to us at info@SWPConnect.com
