Dantes Outlook Market Podcast

Global Macro: Unpacking the Reflation Trade

Episode Summary

On this month’s episode, we’re joined by Dr. Lev Borodovsky, editor of The Daily Shot, a graphical newsletter highlighting macro themes around the world. We discussed the global growth and inflation backdrop, and what it means for credit markets and equities.

Episode Notes

Topics discussed:

• History of The Daily Shot newsletter
• Lev's process for finding relevant info and scanning markets.
• Equity valuations and remaining opportunities.
• The reflation trade.
  • Pros and cons of rising inflation from both a market and economic perspective. (level vs. speed)
  • The Fed's strategy to get ahead of an inflation surprise.
  • Implications for the credit market given high corporate bond issuance.
• Inflation outlook for Europe and Japan.
• Economic improvements in LatAm and other emerging markets.
  • Benefits from export growth.
  • Agriculture markets and other commodities starting the next up-cycle.
• The endgame for QE/MMT/gov debt binge.
  • "Forced to continue fiscal expansion in light of massive debt and low yields, but becoming too reliant on this could hammer the economic recovery."
• Speculative environment in cryptocurrencies.

Subscribe to Lev's newsletter at www.thedailyshot.com