The Business Brew Andy Constan on Today's Macro Backdrop
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May 1, 2025 
Andy Constan, a seasoned investor with 35 years in global equities, shares insights on today’s macro landscape. He discusses the significance of simplifying investing, the transition from corporate finance to hedge fund management, and the dynamics of systemic deleveraging. Andy analyzes U.S. economic policies during the Trump era, exploring the tension between immigration and economic growth. He also delves into treasury issuance, economic uncertainty, and the smart investing strategies needed for navigating volatile markets.
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Andy’s Trading Career and Failures
- Andy Constan shares his trading history and failures, especially losses in 1994-95 and 2007-08.
- He learned that relative value strategies often fail simultaneously due to systemic deleveraging events.
Systemic Deleveraging Risks
- Systemic deleveraging events cause market participants to sell illiquid assets at discounts, forcing others to deleverage.
- Macro understanding helps spot these events to avoid severe losses in relative value trades.
Impact of Trump’s Mixed Policies
- The Trump administration's policies mix anti-growth, inflationary, disinflationary, and pro-growth elements.
- Immigration restrictions and spending cuts slow growth; deregulation boosts productivity; tariffs raise inflation and reduce growth.