Mike Green on the Visible Hand, a Passive Singularity, and Pivoting to Optimism

Nov 7, 2022

We have been eagerly waiting for this one for a while! Our friend Mike Green, Chief Strategist and Portfolio Manager at Simplify Asset Management, returned to the podcast this week. Always thought-provoking, Mike journeyed with us through a wide range of topics that included:

• Why the enthusiasm for central bank intervention is so asymmetric
• Options trading and the wild swings in Zero Days to Expiration Options (0DTE)
• Statistical anomalies in the labor market
• The primary drivers of inflation in the 1970s
• A comparison between Volcker and Powell
• Monetary policy as a blunt tool and powerful opioid – numbing investors and delaying reforms
• Tax arbitrage by big corporations and why they must end
• A path to political moderation in the US
• Why tighter monetary policy may be the wrong policy right now
• A criticism of the Fed – authority, legitimacy, and reach
• Reasons for underinvestment in US energy production
• Why the capital allocation process in the US economy is largely broken
• An update on the recent dynamics of passive investment vehicles
• Home ownership, nimbyism, and affordability
• The importance of the Minsky Framework for the current environment
• “If you’re not doing macro, macro is doing you”
• 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.