Jun 12, 2023
"Just because we get a debt deal this week doesn't mean that the all clear is sounded for investors. In fact, it creates a whole new set of risks for investors," - Zack Scheidt
The ongoing debt debate has overshadowed the banking crisis in recent headlines and dominated the news cycle. In the Market, the prevailing sentiment was that a deal would be reached, and investors positioned themselves accordingly.
But, following the debt ceiling passage, the Treasury Secretary, Janet Yellen, is expected to sell approximately $600 billion worth of treasury bills, injecting money into the Fed's checking account but raising a whole different set of questions, like where will this money come from? And what impact will the Treasury's selling of treasury bills have on the financial markets, including the S&P 500, as investors reallocate funds?
Today, on “The Wiggin Sessions," Zach Scheidt, the investment director of The Essential Investor and the architect of The Essential Portfolio, joins me to help us navigate these complex dynamics and the implications for investors as these events continue to unfold.
Zach is an expert in Wall Street's highest-performing income stocks and has developed a unique high-end put selling strategy. He previously ran two hedge funds with a combined asset total of over $100 million, making him well-versed in the financial industry.
Zach sheds light on the impact of selling treasury bills to raise funds and its potential ripple effect on the market. He highlights the significance of practicing diversification (and avoiding overexposure to speculative stocks).
We also explore key topics, including the implications of rising interest rates on inflation and the Federal Reserve's actions, the influence of climate-friendly solutions on the fossil fuels market, the brewing challenges in the real estate sector, and Zach's predictions for the energy future. Plus, what he thinks will happen with the banking crisis and how investors can mitigate their risks.
Listen in for valuable insights to help investors navigate these turbulent times. And for more, join the Essential Investor TODAY!
How the debt debate has diverted attention from other crises and slowed down the markets
How a potential default on treasuries could lead to a banking crisis and market havoc
The importance of diversification for investors
The trouble brewing in the real estate market
Why high inflation and the weakening dollar make this a favorable environment for owning gold
How the transition away from fossil fuels and the negative signaling towards the oil and gas industry has hindered investments making it economically unsustainable for companies to explore new resources
How rising interest rates pose challenges to the banking sector and which banks are more stable now
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