Bob Elliott on the Next Big Macro Move – It Will Surprise You!

Sep 28, 2023

Prominent figure in the financial industry, Bob Elliott, joins the ReSolve team to discuss monetary policy, inflation, and the role of central banks. They explore topics like the impact of monetary policy on inflation, the risks of long-term elevated inflation, income growth in the current economic cycle, balanced alphas in investment strategies, and the potential of alpha indexing tools. The podcast also covers the ideal weighting of equities, bonds, commodities, and alpha in an investment portfolio, as well as the concept of a diversified portfolio. Valuable insights for anyone interested in understanding the current economic landscape.

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Introduction

00:00 • 3min

Analyzing Recent Central Bank Actions and Inflation Mandates

03:21 • 3min

Similarities to the Late 60s

06:17 • 28min

Inflation Signals and Asset Mispricing

33:53 • 17min

The Impact of Interest Rates on Borrowing and Spending

50:27 • 5min

The Impact of the Federal Reserve and Interest Rates on the Stock Market

55:11 • 20min

Portfolio Construction: The Impact of Asset Allocation

01:15:26 • 24min

Exploring the Potential of Indexation and Low-Cost Index Alphas in Investment Strategies

01:39:19 • 2min

Conclusion and Sponsor Mention

01:41:28 • 2min

In this conversation, the ReSolve team is joined by Bob Elliott, a prominent figure in the financial industry, to discuss monetary policy, inflation and the role of central banks. They delve into the complexities of the current economic landscape, addressing the impact of fiscal policy, wage growth, and the role of alpha in investment strategies.

• Discussion on the impact of monetary policy on inflation and the consequences of not running a sufficiently tight policy in response to economic shocks

• Insights into the inflation dynamic and the risks of long-term elevated inflation

• Analysis of the bond market's reaction to Powell's statement and the implications for long-term inflation risks

• Exploration of the role of income growth in the current economic cycle and its impact on nominal growth

• Discussion on the importance of understanding the behavioral aspects of investment strategies and the concept of balanced alphas

• Insight into the potential of alpha indexing tools and how they can be used to create more reliable investment outcomes

• Discussion on the ideal weighting of equities, bonds, commodities and alpha in an investment portfolio

• Exploration of the concept of a diversified portfolio and how it can improve investment outcomes

This episode is a must-listen for anyone interested in understanding the intricacies of the current economic landscape, monetary policy, and investment strategies. Bob Elliott provides valuable insights into the role of central banks, the impact of fiscal policy and wage growth, and the potential of alpha in investment strategies.

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 Inc.

*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.