Our guest this week was Darius Dale, founder and CEO of 42 Macro, an investment research firm focused on macroeconomics. Our conversation covered topics including:
- How higher inflation leads to higher inflation volatility and increased risk premia
- The core drivers of inflation and where the data currently points
- Complacency followed by overshooting – the central bank dichotomy
- Don’t count on a pivot anytime soon – why Powell is determined to “break things”
- An uncomfortable trade-off – under inflation, central banks can have price or financial stability, not both
- Signs the US economy is still firing on all cylinders
- Strong balance sheets and perhaps the strongest labor market in living memory
- Why cash has once again taken the throne
- The demise of the 60/40 portfolio
- Energy markets dynamics – from geopolitics to ESG
- Why a structural undersupply of labor reduces the probability of a recession
- The dysfunctional combination of tighter monetary and looser fiscal policies
- And much more
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc.
*ReSolve Global Inc. refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global Inc. is a registered person with the Cayman Islands Monetary Authority.