The Loonie Hour The Bull Market Isn't Over Yet- w/guest Michael Nicoletos
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Sep 26, 2025 Michael Nicoletos, a macro investor and hedge fund manager, examines pressing economic issues, highlighting the continued growth of global liquidity and its impact on US markets. He discusses the role of stablecoins in potentially resolving the US debt crisis, and the relevance of capital controls in China. Michael warns against viewing current economic weakness as a market signal, while drawing parallels between today's tech boom and the 1999 internet bubble. His insights reveal the complexities of fiscal dynamics and the advantages of US asset demand.
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Weekend Wood Splitting Upgrade
- Rich Diaz recounts learning to use a wood splitter during a solo camping trip to improve productivity.
- He replaced slow axe work with capital equipment and finished splitting wood quickly.
Inflation As A Debt Reducer
- Michael Nicoletos argues moderate inflation helps reduce real debt burdens by boosting nominal GDP growth.
- Central banks may privately tolerate higher inflation to ease global debt dynamics.
Global Liquidity Fuels US Markets
- Michael links record-high global liquidity to continued US equity outperformance as money flows to U.S. assets.
- He says duration assets benefit when markets expect long-term rates to fall, supporting rich valuations.