The Master Investor Podcast with Wilfred Frost Larry McDonald: Inflation’s Not Dead, Commodities Are Just Starting, and Why Passive Investing Could Break the Market
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Aug 13, 2025 
Larry McDonald, a former Lehman trader and author of The Bear Traps Report, shares his insights on today's volatile markets. He warns that inflation isn't dead and stresses the significance of commodities in a shifting investment landscape. McDonald advocates for patience, avoiding over-trading, and adjusting portfolio strategies to counteract inflation. He discusses the risks of passive investing and highlights emerging opportunities in sectors like uranium and natural gas, urging listeners to stay informed and adapt.
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Debt Dynamics Force Financial Repression
- The US debt burden demands financial repression and Fed support of bond markets.
- Inflation's 'serpent' is not dead, forcing portfolio construction changes if inflation normalizes higher.
Position For Fed-Led Dollar Weakness
- If the Fed cuts aggressively while other central banks remain tighter, expect dollar weakness and broader commodity gains.
- Move allocative risk toward hard assets when Fed dovishness outpaces global peers.
AI Capex Spurs A Commodity-Led Rebuild
- AI capex is a huge demand driver but also exposes a parallel need to rebuild energy infrastructure.
- That twin demand makes this commodity cycle more structural than previous ones.
