We Study Billionaires - The Investor’s Podcast Network TIP307: Cullen Roche on Stocks, Inflation, & COVID-19 (Business Podcast)
Jul 25, 2020
Cullen Roche, founder of Pragmatic Capitalism and seasoned financial expert, delves into the intricacies of today’s market conditions. He reveals the unique dynamics between inflation and growth versus value stocks. Cullen explains why inflation risks stem more from the Treasury than the Federal Reserve and discusses navigating international equity value. He provides insights on how investors can adapt strategies amidst ongoing volatility and explores the relationship between inflation, interest rates, and real estate prices.
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Coexistence of Monetary Systems
- Cullen Roche believes decentralized money like Bitcoin will exist alongside centralized currencies.
- Centralized currencies benefit from government enforcement of contracts, increasing trust.
Treasury Bonds and Inflation
- US Treasury bonds are essentially money-like instruments, differing from cash primarily in liquidity.
- Inflation will indicate declining trust in US government financial assets, not necessarily rising interest rates.
Measuring Inflation
- Cullen Roche defines inflation as an increase in the general price level, not just money supply.
- He cautions against focusing on specific items within the inflation basket, emphasizing the aggregate view.