We’re back with Episode 2 of the Prometheus Podcast! This recording is one of many podcasts to come, which will cover far-ranging topics in macro, markets, and investing. As always, our objective is to bring you thoughtful and actionable insights, and our conversations will always aim to be so.
Today, we have an exceptional guest, Alfonso Peccatiello- author of The Macro Compass. The Macro Compass is the largest macro Substack out there, and with good reason- Alfonso has a deep and rich understanding of the monetary system, which he has weaponized into an actionable investment framework. His approach is cogent and extremely relevant in today's policy setting. During an in-depth conversation, they discussed the mechanics of the monetary system, the difference between various forms of credit, and how this can all be distilled into an investment portfolio. This is a must-listen for those wishing to link a robust monetary framework to actual risk-taking. Enjoy!
Find the show notes below:
(00:00 - 11:20) Monetary Mechanics: Private Sector Money Verus Financial Sector Money.
(11:20 - 22:30) Government Impulse: Private Money Versus Government Money, The Limits On Credit Creation, Government Spending Limitations.
(22:30 - 28:15) The Macro Compass: Credit Impulse, Monetary Policy Stance Versus Neutral.
(28:15 - 33:30) Risk Overlay: Strategic Portfolio, Tactical Portfolio, Stop Losses.
(33:30 - 41:30) The US Macro Environment: We’re In The Worst Quadrant, The Fed, Inflation, Risk Rally, & Bonds.
(41:30 - 46:00 ) Risks To The Outlook: Soft Landing, Treasury Sales By The Fed, Implementing Risk Management.
Make sure to check out his Substack: Click here.
For more “high-frequency” insights like these, follow both @prometheusmacro & @MacroAlf on Twitter.
If you enjoyed this episode, make sure to let us know in the comments below. Finally, if you haven’t already, don’t forget to subscribe!
Prometheus Podcast