Monetary Matters with Jack Farley

Eric Crittenden, CIO and Founder of Stand Point Asset Management, shares his journey of defying the ETF boom to build a $1 billion mutual fund in under five years. He discusses innovative all-weather investing strategies and the crucial role of diversification. Crittenden also contrasts mutual funds with hedge funds, emphasizing management simplicity over complexity. He sheds light on client acquisition strategies, particularly focusing on independent financial advisors, and underscores the evolving landscape of investment choices in today's market.

Jason Cave, a senior consultant at Potomac Global Partners with over 30 years of banking regulation experience, shares insights on the evolving landscape of U.S. bank regulations. He discusses the potential reopening of bank mergers and acquisitions, the pause on Basel III, and the optimistic outlook for banks under new leadership. Cave also addresses the future of Fannie Mae and Freddie Mac, emphasizing the ongoing challenges and the push for regulatory reforms that could benefit smaller banks and enhance overall stability in the financial sector.

Citrini, a renowned cross-asset thematic investor behind the Citrindex, shares his insights on lucrative trades for 2025. He dives into the dynamics of the housing market, spotlighting unique challenges for home builders amid rising interest rates. The conversation shifts to innovative themes such as airline investments, powered by macro trends. Citrini also explores opportunities in emerging technologies, especially in AI and drone sectors, while highlighting company performances that could drive future market success.

Darrell Duffie, a finance and economics professor at Stanford, dives into liquidity strains at quarter-end, exploring the complexities of SOFR/IOR spreads. He discusses how bank payment timing is a better stress predictor than spread itself. Duffie also critiques current debt-to-GDP levels and suggests the Treasury's 'stealth QE' tactics. He explains the evolving treasury strategy for short-term needs and its effects on market dynamics, alongside the implications of transitioning from LIBOR to SOFR for banks and corporate borrowing.

Warren Pies, founder of 3Fourteen Research and portfolio manager of $FCTE, shares insights on his remarkable achievement of raising over $450 million for his ETF in under six months. He discusses the critical role of research in attracting investor interest and how strong client relationships can redefine traditional interactions. Warren emphasizes a disciplined, long-term investment approach over fleeting trends and provides a glimpse into the unique strategies that drive his innovative ETF's success.

Michael Howell, Managing Director of Crossborder Capital, shares his expert insights on global liquidity trends and the impending liquidity cycle peak. He analyzes the pivotal role of central banks and cross-border capital flows, warning of potential challenges ahead as refinancing needs grow. Howell also discusses asset dynamics, pointing to the importance of gold and Bitcoin in investment strategies. With a cautious outlook, he highlights the risks associated with the 'everything bust' and the U.S. dollar's dominance in shaping future economic landscapes.

Danielle DiMartino Booth, CEO and Chief Strategist of QI Research, shares her sharp insights on the U.S. economy and job market. She argues that the nation is already in a recession, predicting its true impact will surface by January 29, 2025. DiMartino discusses the rise in unemployment, stealth layoffs, and the burgeoning gig economy's role in shaping labor market dynamics. Additionally, she examines market volatility in the wake of shifting interest rates and political influences, raising alarms about the sustainability of recent stock market gains.

Max Wiethe, a finance expert and host of the Other People’s Money podcast, joins Jack Farley to dissect the recent steep sell-off in the stock market tied to the Federal Reserve's hawkish stance. They delve into the implications of interest rate adjustments and the balancing act the Fed faces amid inflation and unemployment concerns. The duo debates the future of monetary policy, including potential cuts in 2025, and discusses global currency trends, particularly how the euro may weaken against the dollar due to differing central bank strategies.

Noel Smith, Founder and CIO of Convex Asset Management, is a seasoned proprietary trader who has shifted gears to hedge fund management. He unveils the lucrative secrets of prop trading, emphasizing why it often yields higher returns. The challenges of raising capital surprise him, as do the essential roles of relationships and likability in achieving success. Smith also delves into volatility trading strategies, the predictive power of options, and the unique hurdles faced in biotech stock trading, all while highlighting the importance of adaptability in today’s market.

Vincent Deluard, Director of Global Macro at StoneX, shares his insights on the perilous economic landscape leading up to 2025. He discusses how a lower 2024 inflation rate will squeeze government benefits like Social Security through COLA adjustments. Deluard warns of a strong U.S. dollar impacting corporate earnings and predicts potential spending cuts at state and local levels. He also provides a keen analysis of the political turmoil in France and its broader macroeconomic implications.