SBS Economic Freedom Salon discovers insights to overcome the times through analysis and interpretation delivered by top economic experts.

In today's Live, we'll talk about the current U.S. stock market and investment with Jae-Chang Chang, CEO of InMost Investment Advisors. (Moderator: Seung Wook Son)


Q. Why is the Nasdaq up this year?

A. Technical indicators are showing the appearance of a bull market. The liquidity market is starting.

Q. Crisis theory 1. The U.S. bank crisis, what now?

A. Deposits are returning to the bank, and rather the total amount of deposits in the entire bank has increased. Just as the bear rally came before the 2008 financial crisis, there is an analysis that a bigger crisis awaits the current stock price rally. But I think it's different now than it was then. Because the causes of the crisis are different. This is because this is not a crisis caused by insolvent assets.

Q. Crisis theory 2. Will a rate cut cause stock prices to crash?

A. Historically, when the Fed cut rates, stock prices fell. Because the Fed always tends to tighten excessively. The Fed has a two-way policy, but price stability is its biggest job. That's why they do whatever it takes to stabilize prices. Because the Fed is the defender of the dollar. We will tighten strongly if necessary to preserve dollar hegemony.

Q. So if May were the last rate hike, would stock prices crash?

A. This time is different. I don't think it's going to crash. Because we released so much money during Covid, a lot of money piled up in households acts as a buffer. In addition, there is a lot of spending in each country, which allows companies to make money.

Q. Should I enter stocks now?

A. Yes. The predicted stagnation has never come. This is the bottom.



※ If you click the banner below, you can watch the <Economic Freedom Salon> live.