Gareth Soloway: China’s Stock Market Slump, A Leading Indicator For the World

Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for Verfied Investing to discuss the state of Chinese and US markets. Soloway finds the significant divergence between the S&P 500 and the Hang Seng market noteworthy. The S&P 500 is ascending, while the Hang Seng market is grappling with multi-year lows. He cites crackdowns on businesses, trade tariffs, and the global investment shift away from China as some of the challenges China is facing. Soloway also refers to the problematic economic stimulation in China via construction of vacant cities. Soloway warms of several trends that may affect the broader economy, such as layoffs from major corporations, the increase in artificial intelligence (AI), and possible recessions. AI, while it could lead to cost reductions, might result in significant job losses and impact the economy negatively. He also comments on the maturation of the Bitcoin market and the stagnant activity in the gold market, suggesting economic impacts surrounding these markets. Soloway predicts a drop in oil prices by the end of the year and points to increased US production as a factor in making the US energy independent. He identifies natural gas as a riskier investment, despite potential short-term upsides. He sees a gloomy outlook for copper, hinting at numerous recessions, including those in Europe, the UK, and China. Market psychology greatly affects the overall market conditions and investment decisions. The market's reaction to significant company announcements, such as Netflix's recent positive news, demonstrates this. Even if these companies are not top-tier, their impact on the market and investors is significant. Soloway notes that considering variables like job reports and inflation is crucial for anticipating market trends and warns that competition may erode big tech companies' margins in the future. Time Stamp References:0:00 - Introduction0:44 - U.S. & China Markets3:55 - U.S. Stimulus & Assets5:00 - Trillions & Rates6:24 - China & Hang Seng Index9:23 - Rate Cut Expectations11:03 - Earnings & Layoffs14:40 - Bitcoin Sector & ETFs17:00 - Gold Markets & Trends20:03 - Silver & Industry21:55 - Oil & Natural Gas24:34 - Copper Run & Recession27:14 - Global Recession Risk?28:18 - Earnings & Psychology31:00 - Ratings & Stock Chasing33:53 - A.I. Narratives36:15 - Wrap Up Talking Points From This Episode * The divergence between the S&P 500 and the Hang Seng market may indicate future downturns in the US markets. * Large-scale layoffs and the rise of AI might heavily impact the job market and economy leading to a possible recession. * Despite the potential for short-term gains, natural gas represents a risky investment given the vast production volume. Guest Links:Twitter: https://twitter.com/GarethSolowayWebsite: https://inthemoneystocks.com/Website: https://verifiedinvestingcrypto.comWebsite: https://verifiedinvestingeducation.comLinkedIn: https://www.linkedin.com/in/gareth-soloway-60827953/ Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University, where he studied Economics. After college, Gareth quickly excelled as a financial adviser, but his heart was always in swing and day trading. He had this long-standing belief that he could help investors make more money by advising them on shorter-term investments (hol...