On today's episode of "The Macro Trading Floor," Alfonso and Andreas are joined by Nick Givanovic. Nick provides a wealth of knowledge having spent over 40 year in the investment industry. From 1983 - 1993, Nick ran the largest bond book in the world, and has worked at some of the largest firms in the world including JP Morgan and Salomon. Nick joins the show to focus on the elephant in the room, inflation. Quoting Milton Friedman: "Inflation Is Always and Everywhere a Monetary Phenomenon", Nick provides a deep dive into why he believes inflation could remain persistent in this environment. He goes on to discuss the bond market mispricing, inflation expectations and how earnings repricing could drag equity markets lower. Finally, Nick shares his actionable trade idea, but to hear that, you'll have to tune in! -- Follow Nick: https://twitter.com/NickGiva Follow Andreas: https://twitter.com/AndreasSteno Follow Alfonso: https://twitter.com/MacroAlf Follow Blockworks: https://twitter.com/Blockworks_ Subscribe To The Macro Compass: https://themacrocompass.substack.com/ Subscribe To Stenos Signals: https://andreassteno.substack.com/ Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/ -- Referenced In The Show: Euro-Zone Inflation Hits Record as ECB Mulls How Quickly to Hike: https://www.bloomberg.com/news/articles/2022-05-31/euro-area-inflation-hits-record-as-ecb-mulls-how-quickly-to-hike#xj4y7vzkg Fed's Bostic calls for caution as Fed raises rates: 'Even firetrucks with sirens blaring slow down at intersections': https://www.marketwatch.com/story/fed-cant-be-reckless-in-the-way-it-pushes-up-interest-rates-bostic-says-11653410349?mod=article_inline Transcript: Fed Chairman Jerome Powell at the WSJ Future of Everything Festival: https://www.wsj.com/articles/transcript-fed-chairman-jerome-powell-at-the-wsj-future-of-everything-festival-11652821738 German retail sales drop in April as food prices bite: https://www.reuters.com/markets/europe/german-retail-sales-drop-more-than-expected-april-2022-06-01/ -- Timestamps: (00:00) Introduction (01:03) Top Stories Of The Week (13:11) Feature Interview With Nick Givanovic (15:03) Inflation Is Always and Everywhere a Monetary Phenomenon (25:16) Inflation Expectations (29:38) Earnings Recpricing Will Drag The S&P Lower (36:14) Nick's Actionable Trade Idea (45:52) Post Interview: Final Thoughts -- Disclaimer: Nothing discussed on The Macro Trading Floor should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
