Part 2/11:
Ed Dow kicked off the conversation by addressing the prevailing bearish sentiment towards bonds and the optimistic outlook towards equities. After experiencing the worst bond market in almost 80 years, Dow argued that bond yields might not rise as widely predicted; rather, he posits that yields might move downward as the U.S. economy braces for potential economic shifts.
He emphasized a thorough analysis of economic indicators, revealing that while many predicted a recession at the end of 2023, the early signals indicated otherwise. This discrepancy, he noted, was largely attributed to unprecedented government spending and an influx of illegal immigration, which, while stabilizing the economy, ultimately masked deeper underlying issues.