Markets Will Get A Deficit President No Matter What | Jim Bianco & Jeremy Schwartz

Bullish:

• $BONDS - Bonds are expected to outperform stocks in the near term.

  • “I'm gonna say bonds are gonna be a better performer than stocks over the next year.”

    Jim·0:00
• $STOCKS - Stocks are viewed as a good long-term investment with potential for real returns.

  • “If you zoom out to, like, what are these things pricing for the long term? It's sort of on brand for stocks for long run. If you took the S&P 500, you got a little bit above a 20 PE, So you're talking about a 5% earnings yield. That 5% earnings yield is is a real return that we look at sort of as a long term expected return.”

    Jeremy·0:00

Bearish:

• $STOCKS - Stocks may have limited upside in the near term due to current valuations and inflation concerns.

  • “I could see with the valuations in the stock market now, and if I'm right about this inflation thing, they're kind of where they are right now, like a zero return.”

    Jim·0:00