MI2's Global Macro Summit

September 26-29| Vail, CO

LIVE NOW! Stream Sessions Virtually!

Palisades Gold Radio Feat. Julian Brigden

September 5, 2023

“Market Pain Will Create the Perfect Conditions for Gold” -Tom Bodrovics welcomes back Julian Brigden from Macro Intelligence 2 Partners to discuss the inconsistencies between equities and bond markets. Markets don’t seem to be fully pricing in the probability of a recession. We are seeing hyperfinancialization, where equity markets are not necessarily correlating with the real economy. These Hyper Financial Markets are setting the patterns for the movements of bonds and equities. Those in power are concerned with how financial markets are performing rather than the real economy. The demand for jobs remains, but is softening; however, we are not at the stage of job cuts yet. The question is can we have accelerating real growth without having to lose jobs.  Julian thinks that a higher inflationary period combined with increased bond yields is inevitable. We are in the war phase as we witnessed in the late 1960s. The lagging effects of a tightening economy will take some time to be seen fully. There are evident issues in the U.S. economy and these will manifest next year, especially if rates do not decrease. The wildcard here is fiscal policy and equities proping up the current situation. Eventually, equities will need to acknowledge the decreased growth but we are not there yet. Julian questions if the Fed will follow the government’s wishes. Governments are demanding entitlements, like better wages and higher costs of living. The Fed will have to decide between raising inflation or following the governments demands.