Episode 71: Is Europe On The Verge of Crisis? With Vincent Deluard.

Rising oil prices and 10-year yields are creating a challenging economic environment, heightening the risk of a fall stock market correction. Stagflation remains the most probable outcome as supply shocks and wage pressures persist, limiting the Federal Reserve's ability to maintain a hawkish stance. Vincent Deluard, Director of Global Macro Strategy at StoneX, argues that Japan has successfully completed a "beautiful deleveraging" process, positioning the yen as a strategic asset. Conversely, Europe faces a mounting sovereign debt crisis, with political instability in France and Germany threatening the cohesion of the Eurozone. Amidst this, UK equities emerge as a contrarian opportunity, having been heavily under-owned following years of negative sentiment. Investors should navigate this landscape by considering high-carry emerging markets and reevaluating the structural risks inherent in European sovereign debt compared to the relative resilience of the U.S. and Japan.