Fiscal Dominance Is Threatening the U.S. Today
Description
On this week's Stansberry Investor Hour, Dan and Corey welcome Lyn Alden to the show. Lyn is an independent analyst, bestselling author, and founder of Lyn Alden Investment Strategy – an investment research service for both retail and institutional investors. She kicks the podcast off by describing how her background in engineering has influenced her macroeconomic investing style. She explains why she became so interested in macroeconomics in the first place and why 2017 was a turning point for the U.S. economy. Lyn also talks about fiscal dominance – or when fiscal deficits and federal debts are large enough that they start reducing a central bank's options. She puts this in the historical context of the 1970s and clarifies why inflation and interest rates are so complexly intertwined today. (4:39)
Next, Lyn shares her outlook for the U.S. economy, including higher-than-baseline inflation for the foreseeable future and the country being in a similar situation to emerging markets. She discusses areas of the market where fiscal dominance has been appearing over the past few years, how the 2010s taught investors the wrong lesson, why the U.S. may experience the same economic troubles that Japan is facing right now, and the divergence between sectors going through recessions versus those that benefit from deficits. (16:42)
Lastly, Lyn cautions listeners against using the traditional 60/40 portfolio in inflationary environments like today's and instead urges them to prioritize energy, precious metals, and hard assets. She also breaks down why she finds Latin America so attractive today (particularly Brazil, Colombia, and Mexico) and gives an in-depth explanation of how technology impacts money. (34:03)
Dan and Corey close things out by discussing the backlash to Argentine President Javier Milei's economic shake-up, including his devaluing the peso against the U.S. dollar and laying off thousands of government workers. Plus, they share their thoughts on the latest speculative meme craze – closed-end fund Destiny Tech100 (DXYZ) – and what it means for the broader market. (54:28)
On this week's Stansberry Investor Hour, Dan and Corey welcome Andrew Walker to the show. Andrew is a portfolio manager at value-oriented hedge fund Rangeley Capital and author of Yet Another Value Blog. He focuses on microcap, deep-value, and special-situations investments.
Andrew kicks off...
Published 11/25/24
On this week's Stansberry Investor Hour, Dan and Corey are joined by Dr. John Sviokla. John is an author, executive fellow at Harvard Business School, and co-founder of GAI Insights – the world's leading generative artificial-intelligence ("AI") analyst firm. He joins the podcast to talk all...
Published 11/18/24