In addition, market participants may feel that a deep bear market is ahead of us, with continuous tightening by the Federal Reserve (Fed) and the war in Ukraine raging on. However, there are those that offer contrarian views; one such analyst is Professor Joel Litman, chief investment strategist at Altimetry, who joined Stansberry Research’s Daniela Cambone show to discuss the markets, on September 15. Litman gave off an optimistic tone by comparing the current state of the markets to that of 2020 rather than 2008, signaling that the markets are still intriguing but that China is in a tough spot. He also added:
Numbers are not great
Litman argues that China is not able to collect the necessary cash, despite its gross domestic product (GDP) increasing. Corporate earnings and household income are not keeping track of the growth, which then prevents China from collecting higher taxes because the taxes are already high. Furthermore, Litman would bet on the US, which can continue to finance everything it needs, but the supply chain supercycle is needed along with the shale revolution for the US to continue dominating the world’s economy. It seems that the corporate fundamentals in the US are far stranger than anywhere else in the world, at least according to Litman. However, for them to remain dominant, the US corporations will need the rest of the world to keep up. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
