Making Markets
Episode 33 The Goldilocks Economy
Making Markets

Episode 33: The Goldilocks Economy

Making Markets

Episode 33

The Goldilocks Economy

Bob Elliott is the CIO of Unlimited Funds. We cover the mechanics of the current market cycle, why the Fed is working with the wrong framework, and Bob’s view on asset classes such as Gold & Bitcoin to Real Estate.

(00:00:00) Welcome to Making Markets

(00:01:50) Understanding the Goldilocks Economy

(00:02:55) Comparing Economic Cycles

(00:04:02) Income-Driven Expansion Explained

(00:08:14) Wage Inflation Dynamics

(00:09:43) Impact of Asset Prices on Inflation

(00:16:18) Government Deficits and Economic Growth

(00:21:24) Federal Reserve's Role and Challenges

(00:26:58) The Role of Forward Guidance in Federal Reserve Policy

(00:27:44) Volatility and Misleading Predictions

(00:28:45) Market Reactions and Fed's Influence

(00:30:26) Understanding the Fed's Reaction Function

(00:31:53) Stock Market Dynamics and Earnings Growth

(00:33:17) The Case for Gold in a Portfolio

(00:38:46) Bitcoin vs. Gold: A Comparative Analysis

(00:41:34) Monetary Policy and Asset Correlations

(00:43:07) Housing Market Trends and Challenges

(00:45:12) Commercial Real Estate and Private Equity Concerns

(00:50:12) Market Consensus and Hedge Fund Strategies

 

The Goldilocks Economy

Introduction

Eric
My guest this week is Bob Elliott, the CIO of Unlimited Funds. Before Unlimited, Bob was on the Investment Committee at Bridgewater, and led Ray Dalio's personal research team for a decade. I'm a big fan of Bob's work and his Twitter account. I was excited to talk to him about all things macro.

We start by diving into the current market cycle and the U.S. deficit, inflation and bond yields. Bob then explains the Fed's reaction function and why he believes they are working with the wrong framework. We end by talking about gold, bitcoin, housing, commercial real estate and private equity. Please enjoy this conversation with Bob Elliott.

The Goldilocks Economy

Eric
Bob, I'm really excited to have you here. I'm a big fan. I think everyone is excited to follow you on Twitter and all of your work at Unlimited. I thought a fun place to start would be this most recent quote that, "It's a Goldilocks economy right now, weak enough to disappoint the stock bulls, but strong enough to disappoint the bond bulls."

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