Michael Howell, CEO of CrossBorder Capital, an investment advisory firm, and author of the book, “Capital Wars: The Rise Of Global Liquidity,” returns to The Julia La Roche for episode 161 to discuss the global liquidity cycle and its impact on the economy.
He explains that liquidity is a key driver of asset prices and that the current liquidity cycle is pushing asset prices higher. Howell argues that the focus on interest rates and policy rates is misplaced, and that the long-term rate and liquidity are more important factors. He also highlights the importance of liquidity in the refinancing of debt and warns of the risks of a liquidity shortage. Howell suggests that investors should consider assets like gold, cryptocurrencies, and solid companies on Wall Street as hedges against monetary inflation.
Links:
Website: http://www.crossbordercapital.com/
Twitter: https://twitter.com/crossbordercap
Substack: https://capitalwars.substack.com/
Book: https://www.amazon.com/Capital-Wars-Rise-Global-Liquidity/dp/3030392902
Takeaways
Timestamps:
00:00 Introduction
1:38 Macro view + liquidity cycle
3:07 Interest rates
6:10 What really matters is the integrity of the US Treasury market
07:47 Hedging Against Monetary Inflation
9:16 Gold
11:56 US public debt
15:15 Monetizing the debt
18:06 Gold is the pole star in the financial system
20:40 US dollar
26:29 Inverted yield curve
31:37 Conclusion and parting thoughts
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#147 Andreas Steno On Why The Resurgence In Inflation Could Mean Another Rate Hike From The Fed
#146 Darius Dale: We’re Pivoting To A Reflation Macro Regime — What It Means For Markets
#145 David Woo, Analyst Who Nailed The 2016 And 2020 Elections, Sees Huge Headwind For The Economy Ahead Of The 2024 Vote
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#142 Dr. Burton Malkiel On 'A Random Walk Down Wall Street,' The Best Way To Invest, And What You're Getting Wrong About 'Efficient Markets'
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#139 'Dr. Doom' Nouriel Roubini On The 10 Megathreats That Could Destroy Our Economy
#138 Peter Mallouk, CEO of $245B Creative Planning: 'It’s Hard To Be Anything But Optimistic Over The Long Run'
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#134 Luke Gromen: A Hard Landing Isn't Going To Come In Stocks. It Will Come In Treasuries
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