MoneyShow MoneyMasters Podcast

Jim Bianco: Good, Better, & Not-So-Good News About Higher Rates and the Return to “Normal”

Dec 28, 2023

Jim Bianco, President and Macro Strategist for Bianco Research, LLC, talks about the impact of higher interest rates. He discusses the winners and losers in this new 'normal' environment, as well as the changing economic backdrop and its implications. He also emphasizes the fading of the 'Index Era' and the increasing importance of active management and quality stock picking.

11:00

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Episode guests

Jim Bianco

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Episode notes

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Quick takeaways

Higher interest rates are not necessarily a cause for economic problems, as they are returning to pre-quantitative easing levels and present an opportunity for investors to earn more interest income.

The end of the bond bull market and shifts in the labor market indicate a transition in investing strategies, with potential for higher gains for skilled stock pickers and a shift away from index investing.

Deep dives

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Introduction

2min

Challenges to the Doom and Gloom Narrative: The Outlook for Inflation and Interest Rates

2min

Analysis of Higher Interest Rates' Impact on Various Sectors

4min

Market Implications and Transition to Stock Picking

4min

Jim Bianco is President and Macro Strategist for Bianco Research, LLC. In this interview – recorded from the floor of our MoneyShow Investment Masters Symposium Sarasota – he outlines the good news...the better news...and the “not so good” news about higher interest rates. The long-time financial markets and policy expert explains that investors, governments, companies, borrowers, and retirees will all see different impacts from this new “normal” environment. In his view, it’s not a “doom and gloom” world – even as there will be some clear winners and losers from a return to 2% “real” rates and 5%-6% nominal ones. Jim goes on to discuss the other ways the economic backdrop has changed, including the newfound power labor has relative to company managements.

He then pivots to the market and investment implications of these long-term, big-picture shifts. Among them: The “Index Era” will gradually fade, while active management and quality stock picking will prove increasingly rewarding. Stated another way, the markets might generate “milquetoast” returns. But investors willing to put in the work and identify key winners in sectors like technology or energy could generate much stronger ones.

Don’t forget to check out our 2024 MoneyShow/TradersEXPO Las Vegas, set for Feb. 21-23, 2024, at the Paris Las Vegas. You can get the very latest insights from experts like Jim there. Click here to register: https://conferences.moneyshow.com/moneyshow-las-vegas/?scode=061246

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MoneyShow MoneyMasters Podcast

Jim Bianco: Good, Better, & Not-So-Good News About Higher Rates and the Return to “Normal”

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

WonderSuite: Making WordPress Website Creation Easier

Understanding the Outlook for Inflation and Interest Rates

Market Implications: Transitioning to Stock Picking

Remember Everything You Learn from Podcasts