The stock market navigated various risks in 2023 including high interest rates, inflation, and a war in the Middle East. As we step into the new year, the question looms: will these persistent risk factors continue to shape market dynamics? Michele Schneider, Chief Strategist, MarketGauge joined TheStreet to discuss the potential risks facing markets in 2024.
Full Video Transcript Below:
J.D. DURKIN: What do you think are some of the largest risks facing markets in the New Year, Michele?
MICHELE SCHNEIDER: Well, I know that many are still worried about a credit event. Obviously, our credit is extremely vulnerable. The situation that we saw in March with the regional banks and that crash just sort of magically went away like it was just erased from history. And people think that that could come back to haunt. There is some shenanigans going on with with the Fed and having certain pools of money that banks are able to borrow at one interest rate and then pay back at another. There's that would be probably one big risk.
Of course, an escalation of the war in the Middle East could be another big risk. And I think really also just our own domestic misstep of policy could be a big risk where all of a sudden the Fed finds itself having to replenish money supply or people are buying our credit foreign countries or the dollar gets more vulnerable than it already is. And we're caught in a situation now where there's nothing to do more than except to try to save the economy once again, which hasn't really proved that it's growing with more QE. And I think that's, you know, all those three things are really I think, something that people have to keep in mind on.
