ReSolve Riffs with Darius Dale on Inflation and Regime Based Trading Tactics

Daruis Dale is the Founder and CEO of 42 Macro, an investment research firm that aims to disrupt the financial services industry by democratizing institutional macro-grade risk management frameworks and processes. Prior to founding 42 Macro, Darius was a Managing Director and partner at Hedgeye Risk Management, an independent investment research firm based in Stamford CT. He joined us for jam-packed and timely conversation that included topics such as:

• Positioning for inflation volatility and the “Midas Touch”
• The Fed and accelerating the taper
• The Dynamics of the recent “Friday Smackdown”
• The missing “Guardians of the Gate”
• The implications for bonds
• Cyclical changes and secular regimes
• Declaring regimes and pricing them in
• Portfolio construction and conditional probability
• Why you don’t get paid for being too early
• Frontrunning pricing with intuition and expectations
• The Style Factor and why it’s the best predictor
• Back-testing regime ensembles
• Covariance ranking, layering and beta ranking in portfolio construction
• Selecting and weighting macro indicators
• Behavioral Economics and why being different is important
• The impact of Bitcoin on portfolios
• The effects of expensive markets relative to inflation
• Policy mistakes and corrections

Thank you for watching and listening. See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.