As they explored its impact on the financial markets, Ratigan argued that America’s federal debt, unlike any other on the planet, can be monetized through quantitative easing. Sosnoff concurred and recommended seizing opportunities in small cap and banking stocks, long bonds and the Chinese tech market, which currently trades at a massive discount compared with U.S. tech valuations, like Tesla (TSLA), Apple (AAPL) and Amazon (AMZN).
Sosnoff and Ratigan view the debt ceiling crisis as a game of political one-upmanship, where monopolizing the narrative and flexing political muscle take precedence over genuine concern for the public good. Ratigan asserts that most members of Congress are concerned primarily with their own interests and power—a reality that can create financial market turbulence.
Both contend that fear, emotion and monopolistic narratives drive stock trading. Instead, the fundamentals of investing and technical analysis of markets should take precedence, they agree.
Despite reservations about what’s happening in Washington, Ratigan remains optimistic about the potential for attractive trades in small caps, banking stocks, long bonds, and stocks in the Chinese tech market, such as Alibaba (BABA), JD.Com (JD) and Baidu (BIDU).
The conversation soon shifted, and the duo delved into the world of blockchain technology and its potential intersections with politics and investing. They predict the technology holds the power to usher in a new era of transparency.
The era will see fractionalization of assets and equity investments in private homes become the norm, and the blockchain will play a role in recording those transactions, Sosnoff says. Meanwhile, the blockchain will revolutionize resource management and record-keeping, paving the way for more efficiency and transparency.
As the countdown to their London show continues, Ratigan and Sosnoff look forward to sharing their thoughts on those and other potentially paradigm-shifting topics with fellow investors and finance enthusiasts.