Darius Dale @42Macro - Catching up with Global Assets and Economic Conditions

Oct 25, 2022

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.