The Julia La Roche Show #313 Hugh Hendry On Preparing For The Dawn Of Chaos
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Dec 5, 2025 
Hugh Hendry, a former global macro hedge fund manager and founder of Eclectica Asset Management, returns to share his bold investment strategies. He introduces his 'macro compass' portfolio, emphasizing a mix of equities, treasuries, alternatives like Bitcoin, and cash. Hendry warns of impending AI-driven unemployment and predicts that government redistribution will disrupt inflation controls. He also highlights the risks facing the UK economy and argues why tech valuations may be peaking, making this a compelling discussion for anyone interested in macroeconomic trends.
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Four-Quadrant Macro Compass
- Hugh Hendry uses a four-quadrant "macro compass" to diversify permanently across equities, treasuries, alternatives, and cash.
- He rebalances periodically to keep equal volatility contribution from each quadrant.
Buy Long Sideways Breakouts
- Buy assets that have broken long sideways ranges, like Japanese equities after a 35-year breakout.
- Use momentum and price breakouts rather than trying to predict every economic rationale.
Buy Treasuries After Big Declines
- Rebalance into long-duration US Treasuries after their large price decline and mean reversion.
- Own TLT now because long bonds have halved and offer attractive entry despite inflation fears.
