We Study Billionaires - The Investor’s Podcast Network TIP303: Investing During Chaos w/ Lyn Alden (Business Podcast)
Jun 27, 2020
Lyn Alden, an investment researcher with over 15 years of experience and contributions to big names like Forbes and Business Insider, shares her insights on navigating financial chaos. She explains how changing discount rates affect investment strategy and why traditional methods may no longer suffice. Alden discusses the role of money printing, swap lines during COVID-19, and the implications of inflation on asset values. She even delves into Bitcoin's role in a portfolio and the rising influence of China in global markets, making a compelling case for strategic asset allocation.
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Current Market Explained
- The market faces a clash between a large economic shock and the biggest government response ever.
- This situation mirrors historical debt cycles, ending in currency devaluations.
2008 vs. Now
- Unlike 2008, where leverage was in the banking system, this crisis affects the real economy more directly.
- Sovereign debt levels were already high going into this crisis, making it a 'messier' situation.
Repricing in Gold
- Repricing the Dow in gold reveals that most nominal returns are due to inflation.
- The Dow, priced in gold, peaked in 2018, reflecting slowing GDP growth.