This is additional commentary from Richard Clarida that didn't make it into the episode. Legendary Fed Chairman Paul Volcker was highly critical of the Fed’s policy of targeting 2% inflation, saying he saw “no theoretical justification” for it and that if successful, it “would mean the price level doubles in little more than a generation.” In this EXTRA exclusive, Former Fed Vice Chair Richard Clarida defends the 2% solution.

Investing can be simple and accessible to the average person, says financial thought leader and economist Burton Malkiel. Malkiel, author of the investment classic "A Random Walk Down Wall Street," has 50 years of research to back up his claim. In his latest edition of the book, Malkiel emphasizes that investors would be better off buying and holding a broad-based index fund rather than attempting to buy and sell individual securities or actively managed mutual funds. Malkiel's beliefs are supported by the track record of an investor who invested $10,000 in an index fund in 1977 and saw it grow to over $2 million by 2022, while an investor who purchased shares in the average actively managed mutual fund only saw the investment grow to $1.47 million. Despite the changes in the market and the array of investment products and strategies available, Malkiel remains convinced of the validity of his original thesis. He explains why he still believes in the principles of "A Random Walk Down Wall Street" and offers his perspective on ESG investing, factor investing, and cryptocurrencies. WEALTHTRACK episode 1933 broadcast on February 10, 2023 Bookshelf: A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy: https://amzn.to/40E5Pa1

Part 2 of 2 Matthew McLennan will assess the investment climate in international markets and tell us where he is finding world-class companies selling at substantial discounts to their U.S. peers. The global economic outlook for 2023 is uncertain with the World Bank cutting its growth forecast to 1.7% from 3% and stating the "global economy is perilously close to a recession". The International Monetary Fund slightly raised its growth estimate to 2.9% due to China's reopening and slowing inflation. Central banks, especially in developed countries, are tightening to fight inflation, which may hinder future growth. The European Central Bank and the Fed have both raised short-term rates and signaled more increases in the future. A recent survey of 1200 CEOs shows 98% expect a global recession, with more than half fearing a recession worse than the 2008 financial crisis. In Part 1, we discussed the risks and opportunities in the U.S. markets with McLennan. WEALTHTRACK episode 1932 broadcast on February 03, 2023 More Info: https://wealthtrack.com/world-class-international-companies-selling-at-substantial-discounts-to-their-us-peers/ Listen to Part 1: https://wealthtrack.com/leading-global-value-manager-matt-mcclennan-on-companies-that-thrive-despite

Part 1 of 2 The Federal Reserve is currently facing a debate on Wall Street about how much longer it will continue to fight against inflation. The Fed's goal is to bring the inflation rate down to a long-term average of around 2%. Some investors believe that the Fed will continue to stay the course and keep fighting inflation, while others are tracking the slowdown in inflation indicators and believe that the Fed may cut rates in the second half of the year. Matthew McLennan, Co-Head of the Global Value team at First Eagle Investments, is a leading global value manager with a successful track record of investing in the U.S. and overseas. McLennan will examine the risks of monetary and fiscal tightening amidst high debt levels in the U.S. and discuss the types of companies that can succeed despite these challenges. WEALTHTRACK episode 1931 broadcast on January 27, 2023 More info: https://wealthtrack.com/leading-global-value-manager-matt-mcclennan-on-companies-that-thrive-despite-us-investment-risks/ Bookshelf: Against the Gods: The Remakable Story of Risk by Peter Bernstein https://amzn.to/409XVoj Conservative Parties and the Birth of Democracy By Daniel Ziblatt https://amzn.to/3kRNpSv

The best advice investors could have received at the start of 2022 was to not fight the Federal Reserve as it embarked on its most aggressive tightening cycle in more than 40 years. By raising the federal funds rate and continuing to hike, investors who recognized the impact on bond and stock prices could have avoided a lot of pain. As we move into 2023, the best advice for investors remains the same - "Don't fight the Fed." The Federal Reserve is being clear about its intentions to continue raising short-term interest rates and tapering its bond purchases until it reaches its target of bringing inflation down to 2%. Richard Clarida, a highly respected expert in Fed policy and Vice Chairman of the Federal Reserve under Chairman Jerome Powell, will be discussing these topics and more in this episode. He is currently a Global Economic Advisor at PIMCO, where he previously coined the phrase "New Neutral" in 2014, predicting that short-term interest rates would remain low for longer. He is also a key architect of the Fed's new policy framework of targeting an average inflation rate, allowing for higher rates of inflation without prematurely raising rates. WEALTHTRACK episode 1930 broadcast on January 20, 2023

Charles Ellis, also known as "Charley," is a highly influential thinker in the investing world. He has been a frequent guest on WEALTHTRACK for 17 years and is considered "Wall Street's Wisest Man" by Money magazine. He has authored 20 books, with the most famous being "Winning the Loser's Game," which is now in its 8th edition. In 2022, he published "Figuring it Out: Sixty Years of Answering Investors' Most Important Questions," a collection of his most thoughtful and thought-provoking articles and essays. In Part One of our interview, Ellis discussed how much the investing world has changed over the years and his recommendation for individuals to take a total financial portfolio approach to financial planning. In part two of his exclusive WEALTHTRACK interview, he discusses how individuals can create the best financial plan for their specific situation. WEALTHTRACK episode 1929 broadcast on January 13, 2023 More info: https://wealthtrack.com/building-a-financial-plan-to-match-your-unique-needs-with-investment-legend-charles-ellis/ Bookshelf: Inside Vanguard: Leadership Secrets From the Company That Continues to Rewrite the Rules of the Investing Business: https://amzn.to/3keDdn7 Winning the Loser's Game: Timeless Strategies for Successful Investing (8th edition): amzn.to/3AbA9Nt Figuring It Out: Sixty Years of Answering Investors’ Most Important Questions: amzn.to/3UsNnxC

In the past, stock investing focused on individual companies and their specific attributes, with a relatively small percentage of the population participating. However, the markets have since expanded, and market participation, particularly through retirement accounts, has increased significantly. This has led to the realization that macro factors, such as the global economy, geopolitics, and domestic politics, are important to consider in investment decisions. Jason De Sena Trennert, Co-Founder and CEO of Strategas Research Partners, is an expert in the macro picture. Strategas has been voted the top independent macro research provider by Institutional Investor for six consecutive years. Trennert discusses the major macro themes that will shape the investment climate for the foreseeable future. WEALTHTRACK episode 1928 broadcast on January 06, 2023 More info: https://wealthtrack.com/leading-investment-strategist-jason-trennert-identifies-four-macro-themes-shaping-his-portfolios/

The original firm that Ed Hyman co-founded - ISI Group, International Strategy and Investment, recognized from the very beginning that China would have an important role to play in the world economy. How right they were. As China allowed the private sector to flourish and opened up to foreign investment, it became the world’s second-largest economy. Under the dictatorial regime of President Xi Jinping, many of those policies have been curtailed to China’s detriment. Hyman’s view of China has changed as well.   WEALTHTRACK Episode 1927, published on December 30, 2022

WEALTHTRACK will be focusing on the theme of "what a difference a year makes" in 2022 and 2023, as there have been major changes in the economy and markets, including an acceleration in inflation, rising interest rates, a withdrawal of monetary stimulus, and a shift from liquidity-driven speculation to risk aversion.  Jason Trennert, a financial thought leader and CEO of Strategas Research Partners, a leading provider of economic, market, and policy research, and his team have become bearish on the market due to the rapid rise in inflation and the Federal Reserve's commitment to its anti-inflation policies.  Trennert discusses the ongoing pressures on the economy and markets and why there may be more market pain ahead. WEALTHTRACK #1925 broadcast on December 16, 2022. More info: https://wealthtrack.com/leading-strategist-jason-trennert-is-uncharacteristically-bearish-he-explains-whats-changed/

Ed Hyman, the number one ranked economist on Wall Street for 42 years, has warned of the unintended consequences of the Federal Reserve's rapid tightening policies. Hyman, who is Vice Chairman of Evercore and leads the economic research team at its Evercore ISI division, has been monitoring the factors behind the recent nominal GDP growth, including record low-interest rates and a surge in the money supply. However, inflation has been surging, and the Fed is raising rates at a faster clip, leading to weakness in the economy. Hyman's recent reports highlight the impact of the Fed's tightening measures. WEALTHTRACK Episode #1924 broadcast on December 09, 2022 More info: https://wealthtrack.com/legendary-economist-ed-hyman-worries-about-the-unintended-consequences-of-feds-rapid-tightening/ Bookshelf: Reminiscences of a Stock Operator: https://amzn.to/3FhYoex One Up On Wall Street: How To Use What You Already Know To Make Money In The Market https://amzn.to/3uBS2BM