Yesterday I had Porter Collins and Vincent Daniel on the podcast for the first time. We talked about everything going on markets, from the sucking sound of money chasing technology to the bifurcation of wealth in society and the role of government when it comes to regulating what is going on in markets. We also talked about gold, the Fed, and where things might be headed over the next couple years. You can find Porter and Vincent at their Substack, which is a must follow.
Podcast Summary
The bifurcation of wealth going on right now and the historical comparisons to previous cycles.
How passive and quant funds have continued to play bigger roles in the market.
The SpaceX valuation and Elon’s role in the establishment.
Insider trading and the lack of trust in our institutions.
The government taking stakes in companies and the shift towards state owned enterprises.
Why they avoid trading political views and instead focus on the motivations of different powerful players and how it impacts markets.
The plunge protection team and the intervention in different markets by the Fed and the Treasury.
How gold protects investors from long-term debasement.
Warsh’s role at the Fed and why their most important job is finding investors to buy US debt to keep the cost of capital low.
Why the US is like Gotham, and why the formerly unwritten rules need to codified.
Their thoughts on sports gambling and prediction markets.
Why the only time they actually get bearish is when the Fed starts tightening rates because that is when the liquidity and the tide starts going out.
Book Recommendations: A Short History On Financial Euphoria by John Kenneth Galbraith, The Making Of A Permabear by Jeremy Grantham & Great Society by Amity Shlaes.
