Less Noise, More Signal Portfolio Manager Ben Kizemchuk: Stop using 20th century investment models in a 21st century market
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Jul 17, 2025 Ben Kizemchuk, a portfolio manager at Wellington Altus, shares his insights on the evolving landscape of investment strategies. He and Pascal Hugli discuss fiscal dominance as the new economic driver and the vital 'Four F's' framework for understanding market dynamics. Kizemchuk explores the growing importance of fixed supply assets like gold and Bitcoin, while emphasizing the need for investors to adapt to changes propelled by technology and fiscal policies. Unpacking the limitations of traditional models, he inspires a fresh approach to wealth management in today's economy.
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Fiscal Dominance Shifts Growth
- Fiscal dominance means government spending drives economic growth instead of bank credit creation.
- The transition creates a foundation for AI capitalism and post-scarcity economics.
Role of Financial Repression
- Financial repression keeps interest rates low to enable growth and manage government debt.
- It creates "heat sinks" to absorb government-created money, preventing runaway inflation.
Impact of Passive Flows
- Passive flows cause markets to be driven by fund flows rather than valuation.
- This automates investments, increasingly concentrating capital in largest companies.
