Darius Dale: Progressing Through The Fed Tightening Cycle

Nov 2, 2022

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On today's episode of "On the Margin", Darius Dale CEO of 42 Macro joins the show for a discussion on the Fed's tightening cycle.

By tracking the effects of liquidity on financial markets, Darius shares his framework for assessing the current tightening cycle the Fed is embarked on in their quest to fight inflation. While 2020 and 2021 saw markets soar to new highs in a liquidity cycle & growth upturn, 2022 has seen the opposite as the liquidity cycle downturns. In order to understand the market cycle, you must first understand the liquidity cycle, but to hear that, you'll have to tune in!

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Referenced In The Show:

Progressing Through The Tightening Cycle: https://www.bridgewater.com/research-and-insights/an-update-from-our-cios-progressing-through-the-tightening-cycle

Timestamps:

(00:00) Introduction

(00:57) The Liquidity Cycle

(07:58) Where Are We In The Liquidity Cycle?

(16:12) The Fed Is Looking In The Rear View Mirror

(19:24) Progressing Through The Tightening Cycle

(24:08) Circle Ad

(25:27) Tracking The Inflation Cycle

(34:17) Measuring Liquidity Using The GRID Framework

(40:45) Final Thoughts: Darius' Outlook On Markets

Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.