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TIP486: Macro Investing w/ Cullen Roche

Oct 23, 2022

Cullen Roche, author of 'Pragmatic Capitalism' and founder of The Discipline Funds, delves into the world of macro investing. He argues why understanding the macro landscape is crucial for investors and compares the economy to the human body. Cullen critiques the traditional buy-and-hold strategy and discusses why homes aren't always great investments. He emphasizes the importance of global diversification and explains yield curve control—a key concept in today's economic discourse. His insights on money creation in a digital age are particularly thought-provoking.

01:21:20

Episode guests

Cullen Roche

Highlights

AI Chapters

Episode notes

Realistic Expectations of Stock Market Profitability

01:34

Prudent Reallocating of Savings vs. High-Risk Investing

01:28

Balancing Short-Term and Long-Term Investment Perspectives

01:31

Diversify Internationally for Long-Term Growth

01:28

Intro

4min

Evolving Perspectives on Macro Investing

23min

Understanding Bonds and Listener Engagement

2min

Rethinking Investment: Homes, Stocks, and Bonds

24min

Understanding Bonds: Tailoring Investment Strategies

6min

The Power of Diversification in Investing

21min

Pragmatic Insights and Future Endeavors

4min

IN THIS EPISODE, YOU’LL LEARN:

01:22 - Why and how do we need to understand the macro environment when we invest
07:18 - Why we should think of the economy as we think of the human body
19:02 - Why the traditional buy-and-hold equity strategy is flawed
26:20 - Why a house we live in is typically not a good investment
35:16 - How has the stock market performed after inflation and taxes?
40:38 - Why investors are not globally diversified when they invest in the S&P500
48:27 - Why bonds bear markets are different from bear markets in stocks
55:58 - Why diversification is about hating some of your portfolio all of the time
1:03:49 - How money creation will change with a digital currency by central banks
1:11:53 - What is yield curve control, and how is it exercised?
1:16:08 - What is the third mandate of the FED?

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Stig's first part interview with Cullen Roche about Inflation.
Cullen Roche's website, The Discipline Funds.
Cullen Roche's website, Pragmatic Capitalism.
Tweet directly to Cullen Roche.
Email Cullen at cullenroche@orcamgroup.com.
Cullen Roche's YouTube channel.
Cullen Roche’s new research paper, All Duration Investing.
Cullen Roche’s book, Pragmatic Capitalism – Read reviews here.

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