This Mega Bubble May Explode Soon

Money Tree Investing

Money Tree Investing Podcast

Business, Investing

4.6 • 733 Ratings

🗓️ 27 May 2026

⏱️ 59 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This mega bubble may explode soon! Find out what it is as we talk growing market uncertainty driven by rising interest rates, inflation concerns, and global conflict, while warning investors about the risks developing in the bond market and increasingly narrow stock market leadership. We explore how higher Treasury yields, stubborn inflation, housing weakness, and mounting global debt pressures could impact both stocks and bonds, while also breaking down why investors should remain cautious despite strong performance in select sectors like semiconductors and AI. We cover consumer stress, leverage building in the markets, Japan's bond challenges, concerns surrounding global liquidity, and the importance of avoiding emotional reactions to sensational economic "chart crimes" and extreme market predictions. Today we discuss...

Why rising Treasury yields and bond market volatility are becoming a major concern for investors.
Inverted versus normal yield curves and what they signal about the economy and lending conditions.
How higher oil prices and ongoing geopolitical conflict could keep inflation elevated.
Concerns that higher interest rates could pressure both stocks and bonds at the same time.
Why traditional diversification strategies are struggling in today's correlated market environment.
How a small group of semiconductor and AI stocks are driving most of the stock market gains.
The growing stress facing consumers from inflation, mortgage rates, and rising debt burdens.
Weakness in the housing market and the impact of high mortgage rates on affordability.
Concerns about China reducing its holdings of US Treasuries and the implications for bond markets.
Japan's rising bond yields and the risks tied to global debt and liquidity markets.
Whether current inflation trends could resemble the inflationary environment of the 1970s.
Why many alarming economic charts online can be misleading "chart crimes" driven by correlation rather than causation.
How government stimulus during COVID contributed to inflation by increasing consumer spending power.
How inflation impacts everyday expenses like healthcare, childcare, education, and housing more than electronics or technology.
Growing leverage and speculative behavior in global markets as investors chase returns.
The role of the US dollar as a macroeconomic pressure gauge rather than a simple trading indicator.
Why investors should stay cautious, avoid emotional reactions, and focus on risk management during uncertain market conditions.

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Douglas Heagren | Mergent College Advisors

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For more information, visit the full show notes at https://moneytreepodcast.com/mega-bubble-may-explode-821

Transcript

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0:00.0	Welcome to the Money Tree Investing podcast. Stock market, wealth, personal finance, value stocks, invest in your life.
0:11.0	Hello, Smart Money Tree podcast listeners. Welcome to this week's show. My name's Kirk Chisholm. I'll be your host. And today I'm doing with my good friend, Doug Hey, Rick. Happy Friday to you, Kirk. Good to be with you. And it's always nice to break away, have a nice conversation, and get away from the grind of other things. So I love our little weekly fun distraction, but I'm sorry, I'm going to miss you for the next week or so. Hope you can live without me, Kirk, for those listening, I'll be off for, I think, the next one or two. As I say, Doug, I can't miss you if you don't go away. That's right. Exactly. So I'm just trying to make you remember exactly why you love me. Well, happy pre-bemorial day weekend to all of you. I'm excited because I'm done for the week after this and taking the rest of the day off and going to enjoy the outside and before it rains Sunday it's on Sunday, but it's all right, day off's the day off. Yeah, a lot going on in the markets, and we're going to talk about quite a bit of it today, but I did want to start the podcast with some really cool stuff that I learned yesterday. Most people haven't heard of this yet. I've talked to a lot of accountants, even they haven't heard of this yet. So I'm not burying the lead here. Let's put it that
1:14.8	way. So apparently there was a court case, Kwong, K-W-O-N-G versus U.S. And it was over COVID-19 relief,
1:24.7	disaster relief. And it's complicated, but basically the simple version is
1:29.2	from any penalties and interest assessed between January 20 of 2020 and July 10th of
1:36.0	2023 are considered improperly charged under this ruling. So apparently, Kwong 1,
1:41.7	and my understanding, I could be wrong, this is not tax advice.
1:45.8	This is just something to talk to your tax professional about.
1:49.4	The people I've talked to said there's no way for them to even find all of their clients who have this affected.
1:54.7	So you need to be the one to ask.
1:57.2	Do not expect your accountant to do it.
1:58.6	And this is not a reflection on them.
2:00.1	This is just the fact that if they've got 500 people, they can't possibly find everybody
2:04.4	who had interest in late fees.
2:06.5	So if you paid any penalties, interest, late filing fees, anything like that from January
2:13.4	20th of 2020 and July 10th of 2023, you could be affected and you could get money back.
2:19.9	Now, this is being appealed. So this is all my understanding. Like I said, it could be wrong.
2:25.3	This is what I've been told so far. It's still new. It's still fresh. So most people aren't
2:29.5	aware of this. So it could be that more information is coming out. But I just wanted to get it out
2:33.8	there because the key is to talk to your accountant about this and get on the radar.
2:37.9	And here's the reason.
2:38.9	This court ruling was in the Kwong's favor, which is good for all of us.
	...

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