Unhedged

In this engaging discussion, Jay Powell, the chair of the US central bank, dives into the uncertain waters of potential interest rate cuts. He hints at forthcoming reductions but leaves the exact figures up for debate. The hosts, Katie Martin and Rob Armstrong, passionately argue the merits of a 25 versus a hefty 50 basis point cut. They also humorously critique Apple’s latest phone while exploring the technological advancements in veterinary care, blending serious financial insights with lighthearted storytelling.

Aiden Reiter, an expert in economic strategies, discusses the pressing issues in the US housing market. The conversation dives into the alarming rise in home prices and stagnant supply, reflecting on the affordability crisis faced by many Americans. Proposals from political figures like Vice President Harris and former President Trump are scrutinized for their feasibility. The talk also covers challenges posed by local zoning laws and the slow pace of new construction, while offering insights into the complexities of the Turkish equity market and yield curve dynamics.

Recent market shifts are steering attention away from tech giants to more stable names like Walmart and Berkshire Hathaway. The discussion focuses on whether this signifies a broader change in investment strategies. Plus, the hosts debate if Jerome Powell's success is due to skill or sheer luck, stirring thought about the complexities of economic management. With thoughts on AI's impact and the balance between theoretical insights and practical moves, the conversation reveals much about today's evolving market landscape.

Toby Nangle, a former asset manager and current journalist at the FT, delves into the murky ethics of investing for authoritarian regimes. He shares his journey from finance to journalism after grappling with moral dilemmas surrounding human rights abuses in sovereign wealth funds. The conversation highlights the tension between profit and personal values, stressing the need for ethical engagement in investment practices. Nangle also reflects on the political implications of these investments, like how they can serve dual economic and political goals.

Gold prices have soared to a record high, igniting debates about its role as a safe haven amid inflation and political uncertainty. The fascination with gold reflects a deeper distrust in government and central banks, especially in turbulent economic times. Unique demand dynamics from countries like China and India add to its allure. Additionally, the podcast draws intriguing parallels between gold and Bitcoin, scrutinizing their shared reliance on belief for value. Market predictions also delve into NVIDIA's future amidst this backdrop of volatility.

Chris Giles, an insightful economics commentator from the FT, joins to unpack the intriguing phenomenon of the Jackson Hole economic symposium. He explains why central bankers meet in a remote setting and discusses the significance of the upcoming remarks from the Federal Reserve chair. The conversation delves into how these statements can sway market perceptions on interest rates and inflation. They also touch on the need for broader investment access for everyday Americans while sharing amusing anecdotes from exclusive conferences.

Markets are buzzing again after a dip, showcasing the unpredictable financial landscape. The discussion dives into how a few companies are driving major stock gains, raising questions about sustainability. Investment strategies are reexamined, emphasizing diversification, including stocks, bonds, and gold. The volatile world of cryptocurrency and social media stocks is also explored, revealing shifting investor behaviors. It's a dynamic talk that encourages adapting to market realities and questioning traditional financial wisdom.

Join Robin Wigglesworth, a contributor from FT Alphaville, and Hendrik Bessembinder, a renowned professor known for his extensive stock research, as they delve into the staggering results of Bessembinder’s analysis of top-performing stocks over the last century. Discover how one stock achieved an unbelievable 265,528,900% return. They also explore the power of compounding, the challenges facing traditional versus tech industries, the debate between passive and active investing, and the quirks of leveraged ETFs in today’s market.

Jim Leaviss, the outgoing chief investment officer of M&G Investments, shares insights from his impressive 30-year bond trading career, starting at the Bank of England. He discusses the evolving bond market, misconceptions about bond prices, and the influence of significant financial events. Jim humorously reflects on his transition to art, all while debating the best 90s albums with Katie Martin, adding a light-hearted twist to market insights and personal nostalgia.

Bill Ackman, one of the most prominent investors in the U.S., shares insights on his tumultuous journey with a recent IPO. He discusses the clash between his social media presence and fundraising efforts, shedding light on the impact of platforms on investment strategies. The conversation turns to the strange dynamics of institutional versus retail investors and the challenges posed by market volatility. They also delve into the hypocrisy in American politics and the unique tax reforms in Italy, all while keeping the dialogue engaging and humorous.