Published on: October 27th, 2020 • Duration: 65 minutes
Editor Max Wiethe joins Vincent Deluard, CFA, of StoneX to explore the driving forces behind this year’s market corrections as well as how secular stagnation is good for the stock markets despite the detriment it causes the economy at large. With macro variables such as an uncertain U.S. election outcome and the stimulus negotiations in flux, Deluard guides viewers deeper into the weeds by explaining how passive flows — specifically, target date funds — could be one of the culprits behind this year’s extreme market gains and losses. As a result, Deluard projects how the culmination of liquidity and macro risks may cause further turmoil through November with the possibility of the "whales" to re-emerge at the end of the fourth quarter. In the long-term, Deluard also discusses why secular stagnation spells good news for U.S. stocks, how a functioning economy tempers a raging bull market, and whether the Fed will eventually be forced to adopt yield curve control.