Jan Van Eck (@janvaneck3), CEO of Van Eck Funds, one of the world’s largest sponsors of exchange-traded funds (ETFs), joins Julia La Roche on episode 33 to discuss the next big investment opportunity in fixed income.
During the conversation, Jan explains why we’re entering a period where bonds will outperform equities. That’s why he thinks investors must be majority weighted in fixed income. He also points out that too many investors are too focused on the next equity rally since they’re accustomed to the Fed put.
The conversation also touched upon Bitcoin and digital assets amid the FTX fiasco. Jan noted that Bitcoin had demonstrated an ability to withstand a lot of tests. He also shared his thesis on the digital asset and why it’s a store of value against paper money.
Founded in 1955, VanEck was one the first U.S. asset managers to offer investors access to international markets, setting the tone for identifying asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange-traded funds in 2006, and digital assets in 2017. VanEck manages approximately $70 billion in assets, including mutual funds, ETFs and institutional accounts.
0:00 Intro
0:33 Macro view
1:55 2022 can be summarized in one sentence
2:43 Fixed income can and should be a bigger part of a portfolio
3:02 Thoughts on the 60/40 portfolio
4:50 Where in the fixed income universe?
7:22 Views on the economy
9:16 Outlook for equities
10:00 Inflation may be more persistent than people think
12:30 Is the 2% target unrealistic
13:12 Labor market
14:12 Outlook for commodities
16:35 Don’t over chase equities
19:00 Why fixed income can be an under-appreciated part of a portfolio
20:50 Using history to identify all potential outcomes
23:23 Powell will make sure he slays inflation
26:11 FTX one of the last shoes to drop in the deleveraging of crypto
27:47 Knock-on effects from FTX
29:00 The good news for investors in crypto
30:00 Journey into digital assets, Bitcoin
31:24 Bitcoin Futures ETFs
32:10 Spot EFT
35:00 Thesis on Bitcoin
38:26 Biggest risks
41:00 3 big drivers on financial markets
43:00 Psychology of investing
