Michael Gayed, CFA, outlines the current economic landscape by tying credit cycles and market signals to systemic risks.
by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity
In this Finance U podcast, I had the pleasure of speaking with Michael Gayed, CFA, who has a significant following on X, with over 760,000 followers, and runs the insightful Lead Lag Report on Substack. We delved into the current economic landscape, focusing particularly on the credit cycle and the potential for a serious if not systemic credit event.
We discussed:
— The disconnect between the bond market’s perception of default risk and the performance of small-cap stocks, which seem to be signaling distress. He’s been vocal about expecting a significant market dislocation due to this divergence, suggesting that while credit spreads remain tight, small caps are indicating a looming credit strain.