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

Forward Guidance

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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.