Why Stocks and Gold Are Soaring in a World Full of Risk with George Economou

2025-12-19

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Economist George Economou joins us today to share why stocks and gold are soaring in the modern global market. He talks about his global outlook on markets amid rising economic and geopolitical uncertainty, AI-driven growth narratives, stock buybacks, and deep investor anxiety fueled by a multipolar world. We also chat on trade tensions, and escalating conflicts across the globe. He explained how falling interest rates continue to prop up U.S. and European stocks despite stretched valuations, why gold is surging as central banks and investors...

We discuss...

George Economou outlined his background as a Greece-based macroeconomist, financial consultant, academic, and economics educator.
Rising tariffs, shifting trade policies, and the growing independence of BRICS nations are major sources of macro instability.
Europe is particularly vulnerable, with echoes of pre-2008 risks despite strong headline equity performance.
U.S. equity markets are being driven by AI-led profit growth, excess liquidity, and falling interest rates rather than pure fundamentals.
European equity strength is largely attributed to corporate stock buybacks rather than underlying economic health.
Falling interest rates globally were highlighted as a key driver pushing investors away from bonds and into equities.
Gold prices were said to be surging due to geopolitical uncertainty and aggressive central bank accumulation, especially by BRICS nations.
Geopolitical risks involving Russia–Ukraine, the Middle East, and China–Taiwan are central drivers of market anxiety.
Tariffs are a political tool aimed at reshoring U.S. production, but one that economic theory suggests will be inefficient long term.
AI investment is comparable to early smartphone adoption, requiring heavy upfront spending before productivity gains become visible.
CEOs' frustration with AI returns is linked to poor implementation rather than a lack of long-term potential.
Extremely high global equity valuations are attributed to investors avoiding bonds and real estate due to unattractive risk-reward dynamics.
Sustained market valuations is questioned, with the warning that expensive assets eventually decline when buyers step away.