From Macro EDGE Roundup recorded on 07/09/2024
In this short clip from Macro EDGE Roundup recorded on 07/09/2024 (available to EDGE members), Samantha LaDuc and Craig Shapiro discuss potential market dynamics and economic indicators that suggest an upcoming downturn.
They anticipate a correlation spike leading to a market selloff, driven by earnings not meeting expectations and a lack of immediate support from the Federal Reserve. This is likened to the pre-2008 financial crisis events, suggesting a cyclical pattern of a market dip followed by a brief recovery, then a more substantial fall influenced by fundamental economic slowdowns.
The dialogue also touches on the impact of high expectations for earnings against a backdrop of political and economic uncertainty, emphasizing a speculative atmosphere in financial markets.
Samantha’s note:
“Craig starts discussing his bet for a correlation spike when earnings + Fed disappoint, then I pick up on talk on financialization of leverage creating potential for full reversal in market prices back to NOV 1st SPX price.”
