Jeremy Schwartz on Inflation, Fed Policy & Factor Positioning for the Current Environment

Feb 23, 2023

Our guest this week was Jeremy Schwartz, Global CIO of WisdomTree ETFs, a global ETF manager with over $70 billion in AUM. Our conversation covered:

• Why it is important to consider refinancing your house at a lower interest rate and to move your excess cash to higher-yielding accounts
• How managing your savings has become more crucial in the current low interest rate environment
• Why your checking account is costing you money and what you can do to avoid it
• How the recent surge in money supply and inflationary pressures may impact the economy and investments
• Why there is still a structural shift in the labor market and how it could affect real wages
• How the divergence between equities and rates markets may impact investors and the Fed's policies
• Why it is important to diversify your equity portfolio with lower duration, higher quality and lower valuation companies
• How alternatives and inflation hedges can play a significant role in asset allocation and provide return stacking opportunities
• Why commodities can be a useful diversifier to stocks and bonds, particularly in an inflationary environment
• How passive commodity exposure can act as a direct hedge against inflationary environments and provide balance to a portfolio
• Why investors should consider a stock-bond capital efficient portfolio, and how does it work? Why is a leveraged 60-40 portfolio a good combination for taxable investors, and why did WisdomTree choose equity underlying and futures on top of it for a leveraged 60-40 position 
• How investors can outperform cash with a third of the portfolio that is available for investment in diversifiers, and what are some examples of diversifiers 
• How adding managed futures to a stock-bond portfolio provides diversification and protection during inflationary shocks 
• What companies are under the hood of an AI portfolio, and how are they selected

 

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.