Brent Johnson, founder and CEO of Santiago Capital, returns for episode 196, in which he discusses the current macro landscape, focusing on Fed policy, global markets, and his Dollar Milkshake Theory. He explores gold's role as a signal of economic stress, the dynamics of carry trades, and potential market volatility ahead.
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Links:
Twitter/X: https://x.com/SantiagoAuFund
YouTube: https://www.youtube.com/@milkshakespod
Macro Alchemist: https://macroalchemist.com/
0:00 Welcome Brent Johnson
1:05 Current macro picture and Fed policy
4:40 Challenges of engineering a soft landing
8:54 What is gold signaling?
14:22 Global demand for gold
17:29 Dollar Milkshake Theory explained
24:11 Geopolitical implications of the dollar system
30:22 Market outlook
37:42 Are markets in a bubble?
41:51 Gold price outlook
45:35 2024 election impact on markets
49:24 Yen carry trade and broader carry trade risks
56:17 The global system as one big carry trade
59:03 Closing thoughts and where to find Brent's work
The Julia La Roche Show 