#158 Larry McDonald: We’re Entering A Sustained Inflation Regime, Why Trillions Of Dollars Are Currently Misallocated, And The Opportunity Right Now In Hard Assets

New York Times’ bestselling author Larry McDonald, founder of The Bear Traps Report, returns to The Julia La Roche Show to discuss his newest book, “How To Listen When Markets Speak: Risks, Myths, and Investment Opportunities in a Radically Reshaped Economy.”

According to McDonald, we’re in the financial equivalent of the “Fourth Turning,” where the macro regime has shifted from a disinflationary, austerity-driven world to a new era of sustained inflation and increased demand for hard assets. As such, trillions of dollars of assets are currently misallocated. 

McDonald highlights the potential for a colossal energy and commodity crisis in the coming years, driven by factors such as the aging power grid, global conflicts, and rising carbon consumption in developing countries. He suggests reallocating portfolios to include a higher component of commodities.

Links: 

How To Listen When Markets Speak: https://www.amazon.com/Listen-When-Markets-Speak-Opportunities-ebook/dp/B0C4DFVFNR

Twitter/X: https://twitter.com/Convertbond

Bear Traps Report: https://www.thebeartrapsreport.com/

00:00 Introduction and welcome Larry McDonald 

01:21 The macro outlook and the shift to a new era

06:00 A different macro regime, great migration into a totally different portfolio construction

09:05 Inflation

11:53 Trillions are misallocated 

16:00 Recency bias

20:23 Early innings in commodities 

22:00 Headed for a colossal commodities crisis 

26:57 Bitcoin, gold, and silver 

31:50 Closing remarks