We're Facing The Bursting Of Twin Bubbles In Housing AND Stocks | Danielle Park

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**Danielle Park** (0:44)
You know, it's almost like we've taken 2000 and 2007 and squished it together here in a, in a, in a horror, what do you call it, play of horribles, because we've got a tech bubble from, like we had in 2000, but at least the real estate market wasn't in a big bubble in 2000 It had been coming down. And here we've got the real estate bubble and the tech bubble at the same time, after years of zero interest rates. So I just think that the financial risk has never been higher, just as people have never been older in terms of, you know, the bulk of the owners of the, the equity market and of anything on that, in the financial product sector tends to be the over 60 crowd. And you know, I, I see things and I've talked to people, they send me their portfolios, they're 70 years old, they're 85 to 90 percent in equities, and maybe they have 10 percent in some high yield debt or a high yield debt fund. And you know, you try and say to them, this is insane.

**Adam Taggart** (1:54)
Welcome to Thoughtful Money. I'm its founder and your host, Adam Taggart. After a year of projecting confidence in America's strong and resilient economy, at his recent Jackson Hole appearance, Federal Reserve Chair, Jerome Powell, suddenly changed his tune. He expressed concern about the deteriorating labor market, saying the situation may warrant a resumption of monetary easing, not withstanding the potential inflationary risks of tariffs. Now, this comes at a time when stocks are at nosebleed valuation levels, with the general public more exposed to them than at any time since the 2000 and 2007 bubble peaks. So, are investors sleepwalking into an oncoming painful market correction here? To find out, we've got the good fortune to welcome Danielle Park back to the program. Danielle is President and Portfolio Manager for Venable Park Investment Counsel, where she manages millions for some of Canada's wealthiest families. She is also a proprietor of the daily financial website jugglingdynamite.com. Danielle, thanks so much for joining us today.

**Danielle Park** (2:59)
Always nice to be back, Adam.

**Adam Taggart** (3:01)
It's great to have you back, Danielle. You're definitely a crowd favorite here. It's been way too long since we've had you on, so hopefully everybody's very excited that we got you back. Look, a lot to dig into here, and you've been very kind in preparing a whole bunch of slides for us, so I don't really want to get in the way of them. So I guess real quick, before we just let you run on the slides, high level, what's your general take on the macro situation today?

**Danielle Park** (3:33)
Well, it's extremely volatile. I think that's a simple statement. I would say that I think that the focus on tariffs is overdone in terms of concern around inflationary impacts. I think the greater theme is the real estate downturn, which is unfolding in both Canada and America and other countries. And I think that that is likely to have more of a sway on the economic picture, the employment picture going forward than the tariff file. However, it is continuing to undermine confidence, undermine business investment, many things that would be better if they weren't negatives right now. But I think that it's an irritant rather than the main theme.

**Adam Taggart** (4:20)
Okay. And not to steal your punch line from your slide presentation, but right before we turn the camera on, you said in exasperation, I'm so tired of the situation, I just can't wait to be bullish, but I can't be there yet. So is that kind of a true sum up of where you are right now?

**Danielle Park** (4:41)
Yeah. I'm a very optimistic person by nature, and I like to be optimistic. I like to look on the bright side. But unfortunately, my day job is a risk manager for life savings, and so I have to be focused on what can go wrong. And right now, that is the dominant set of factors I see are more negative than positive, and that requires me to focus on them more than I otherwise want to.