Vincent Deluard on Sources of Persistent Inflation and Higher for Longer

Dec 13, 2022

Our guest this week was Vincent Deluard, Director of Global Macro Strategy at Stonex. StoneX (formerly known as INTL FCStone) is an institutional-grade financial services network that connects companies, organizations, traders and investors to the global markets ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high-touch service and deep expertise. Our conversation covered:

 

• Comparing the narratives from other allocators
• Is the Fed Pivot here now and will there be a soft landing
• The rise of structural inflation since before COVID and where will it settle
• Why the Fed is attempting to show that it “tried”
• Underestimating the strength of the economy
• Accepting that Growth, Austerity or Inflation are the solutions
• How China saved the Fed
• Bubbles of Bubbles and Ponzi schemes vs fundamentally driven growth
• Shifting from monetary to fiscal dominance
• The effects of automation on labor requirements
• Irrational American optimism vs European pessimism
• Political influences on monetary policy and the challenges of “onshoring”
• Adjusting the price, not the quantity
• The effects of the rates of change
• The possibility of equities and bonds returning to normal correlations
• Pension funds, interest rates, central banks and commodities
• The importance of diversified portfolios with sophisticated hedges
• 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.