Categories
Master Class

Lacy Hunt on ‘The End Game’

Below is a recent in-depth, rich interview with a market master:

Lacy Hunt (Hoisington Investment Management)

Bill and Grant welcome a man who is the absolute epitome of the phrase ‘a scholar and a gentleman’, Lacy Hunt, to The End Game.

The three discuss arguably one of the greatest trades of the century: Lacy and his partner, Van Hoisington’s 40-year bet on deflation.

Lacy talks about staying the course, the methodology they used to simplify their framework and what it might take for them to change tack after all this time.

Categories
Life Wealth

How Abundance Might Lead to Revolution or War

Why you should watch this interview with tech entrepreneur turned author (“The Price of Tomorrow: Why Deflation is the Key to an Abundant Future”), Jeff Booth:

  • Technology is driving costs lower and productivity up, creating a potential world of abundance. (Think about how many screens you have in your house compared to your parents’ house.) However, it is also creating immense deflationary pressure, which is intensifying.
  • The side effect of improving technology is that many jobs are being automated and made redundant. Your job and your children’s jobs are at risk, while the few at the top reap the benefit.
  • For decades, central banks have attempted to compensate for deflationary pressures by growing money supply by vast amounts. Most of this new money has flowed into financial assets, resulting in asset price inflation. Owners of financial assets gain, but these owners are disproportionately the wealthy. Yes, many people have 401ks, RRSPs and pensions, but their proportion of financial asset ownership is small. However, asset price inflation has not improved the lives of the median household.
  • What we’re left with is a divergent economic experience: “the many” lose because they’re made redundant and don’t own assets to a large extent while “the few” accumulate the gains generated by technology and asset price inflation. This has increased wealth inequality over time and will continue to do so.
  • Society increasingly becomes polarized and susceptible to charismatic leaders who promise solutions without actually addressing the fundamental problem. Often these leaders stoke the smoldering fires, causing people to turn on each other. Then they may turn on ‘outsiders’, however defined. The end result: revolution and war.
Categories
Investing

10 Charts That Make You Say ‘Hmmm’

Where in the world are the best stocks?

Why are valuations for similar companies lower outside of the US?

Ever notice how the best and worst investing periods are clustered together. Kind of makes that ‘if you missed the 10 best days…’ argument a load of BS, doesn’t it? (Because by missing the worst days, you’re also missing the best days.)

If things are so bad, why is the Shiller CAPE ratio so high?

The Canadian consumption comeback

Online purchasing hasn’t fallen back

How often does cash beat stocks?

Stock yields greater than 10 year US Treasury yields

Ad spending is…down

The robots are coming