Silicon Valley Investors Club
  • Home
  • Blog
    • Real Estate Investing
    • Angel Investing
    • Stock Market
    • Personal Finance
    • Private Equity
    • Personal Development
    • Career Development
  • Investment Resources
    • Interviews
    • Investors Therapy Newsletter
    • SVIC Guides
    • SVIC Library
  • Courses
    • How to Buy Your First Rental Property
  • About Us
    • Authors
    • Membership Benefits
    • Privacy Notification
  • JOIN SVIC NOW
  • Menu Menu
Jordan

Ben Melkman | Hedge Fund Manager’s View On Asset Prices | SVIC Interview

August 27, 2020/0 Comments/in Video, Stock Market /by Jordan
Silicon Valley Investors Club (SVIC) is a global community of STEM professionals interested in making smarter investment and career decisions.
JOIN SVIC FOR FREE NOW

Ben Melkman, the founder of Light Sky Macro Hedge Fund, was recently interviewed on Bloomberg and he talked about the world economy and his expectations for asset returns. He expects the Covid-19 pandemic will usher in a world of permanently low-interest rates, huge deficits, sluggish growth, resurgent inflation, and declining U.S. power and influence. He also foresees “glory days” ahead for macro traders. You can find the show notes below.

If you enjoyed this interview please share it!

In This Talk, You’ll Learn About:

  • The problems with interest rates staying at zero due to huge budget deficits.
  •  How the stock bull market is based on the FED pulling forward asset price returns
  • Why he thinks equity returns will be next to zero over the next decade.
  • The problems with a 60/40 stock-bond portfolio.
  • What are the social consequences of the US response to COVID?
  • The vulnerability of the dollar and why it might lose its dominance as a reserve currency.

Related Articles: SVIC’s Guide On How To Invest In Startups

Episode Notes:

  • 00:05  Welcoming Ben Melkman, founder of Lightsky Macro to Bloomberg Front Row.
  • 01:20  Themes that will dominate the macro landscape over the next few years. The death of central bank independence. 
  • 03:00 The problems with interest rates staying at zero due to huge budget deficits. 
  • 05:00 The risk of the US going into a Japanese style recession with low interest rates yet falling assets prices and no economic growth.
  • 05:29  The problems with a 60/40 stock-bond portfolio. How bonds are no longer a hedge and are a liability. 
  • 06:50 How the stock bull market is based on the FED pulling forward asset price returns from the future to the present through stimulus and low interest rates and how this bodes poorly for future returns.
  • 07:56 If the US can’t maintain a strong growth rate it will call into question the bull market in equities
  • 08:52  Is the world in denial in regards to the bleak future of equity markets? World acceptance and consequences of the Virus, pandemic, pandemic response and slowdown of the economy and policy change.
  • 11:26 Hard realities of government debt: How hard is it for governments to slash spending after COVID?
  • 13:00 Why it’s politically unpalatable for congress to pay more of their budgetary expenditures towards interest payments on debt, hence interest rates staying low for the foreseeable future.
  • 13:12 Why he thinks equity returns will be next to zero over the next decade.
  • 14:50 Vulnerability of the dollar and why it might lose its dominance as a reserve currency.
  • 15:58 What are the social consequences for the US response to COVID?
  • 17:49  Why the US economy reminds him of the US economy in the 1960s going into the 1970s economy with stagflation. In the 1960s the central banks and economists didn’t think inflation wouldn’t spike due to government spending, the 1970s proved them wrong. If you combine lax monetary and lax fiscal policy you very well could see inflation.
  • 18:57 Why it will take time for inflation to appear in the economy. 
  • 21:35  Are we seeing the end of American exceptionalism?
  • 23:28 Thinks we will see a boom in macro hedge fund returns due to the volatility caused by central banks.
  • 24:59  Return to the glory days of high macro hedge fund returns.
  • 28:12 What is the most unpleasant surprise he predicts will happen.

Related Articles: SVIC’s Guide to Search Funds

  • About
  • Latest Posts
Jordan
Jordan Thibodeau is a fourth-generation real estate investor and the community manager of the Silicon Valley Investors Club. Jordan works on the Mergers and Acquisitions team at a major Fortune 500 tech company. Jordan made SVIC to be a group where both current and former STEM professionals take part in rich discussions and share investment & career advice that is uniquely tailored to their needs.
Latest posts by Jordan (see all)
  • Nassim Taleb | COVID Misconceptions, Fed Policy, Inflation | SVIC Interview - December 1, 2020
  • Robert Greene | Irrationality 2020 | SVIC Interview - October 10, 2020
  • Ben Melkman | Hedge Fund Manager’s View On Asset Prices | SVIC Interview - August 27, 2020

Share this post
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Reddit
  • Share by Mail

 

You Might Also Like:

Getting Over the “Market Crash” Hurdle

0 Comments
/
January 13, 2021
Read more
https://svinvestorsclub.com/wp-content/uploads/2021/01/pexels-olya-kobruseva-5561919-scaled.jpg 1709 2560 Kristina https://svinvestorsclub.com/wp-content/uploads/2020/04/Silicon-Valley-Investors-Club-1.png Kristina2021-01-13 21:54:582021-01-18 11:14:42Getting Over the “Market Crash” Hurdle

Nassim Taleb | COVID Misconceptions, Fed Policy, Inflation | SVIC Interview

0 Comments
/
December 1, 2020
Read more
https://svinvestorsclub.com/wp-content/uploads/2020/11/Screen-Shot-2020-11-12-at-2.30.08-PM.png 1218 2126 Jordan https://svinvestorsclub.com/wp-content/uploads/2020/04/Silicon-Valley-Investors-Club-1.png Jordan2020-12-01 11:15:352020-12-07 03:32:15Nassim Taleb | COVID Misconceptions, Fed Policy, Inflation | SVIC Interview

Robert Greene | Irrationality 2020 | SVIC Interview

0 Comments
/
October 10, 2020
Read more
https://svinvestorsclub.com/wp-content/uploads/2020/10/Screenshot-2020-10-09-at-12.59.25-PM.png 734 1438 Jordan https://svinvestorsclub.com/wp-content/uploads/2020/04/Silicon-Valley-Investors-Club-1.png Jordan2020-10-10 10:51:342020-10-12 04:15:11Robert Greene | Irrationality 2020 | SVIC Interview

The Value of Corporate Stock Buybacks

0 Comments
/
September 28, 2020
Read more
https://svinvestorsclub.com/wp-content/uploads/2020/09/Screenshot-2020-09-28-211350.png 915 1390 SearchfundSearcher https://svinvestorsclub.com/wp-content/uploads/2020/04/Silicon-Valley-Investors-Club-1.png SearchfundSearcher2020-09-28 17:21:032020-10-12 04:13:45The Value of Corporate Stock Buybacks

Tags: Stock Market, SVIC Interview
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Reddit
  • Share by Mail
https://svinvestorsclub.com/wp-content/uploads/2020/08/Screenshot-2020-08-27-at-8.48.14-AM.png 814 1446 Jordan https://svinvestorsclub.com/wp-content/uploads/2020/04/Silicon-Valley-Investors-Club-1.png Jordan2020-08-27 07:55:112020-09-18 04:24:12Ben Melkman | Hedge Fund Manager’s View On Asset Prices | SVIC Interview
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to the SVIC Newsletter


Like us on Facebook

Recent Posts

  • Getting Over the “Market Crash” HurdleJanuary 13, 2021 - 9:54 pm
  • 3 Free PropTech Tools to Help You Work Like a Pro: #1January 11, 2021 - 11:33 pm
  • SVIC Guide: How To Invest In Startups With Angel SyndicatesDecember 16, 2020 - 11:37 am

January 13, 2021

Getting Over the “Market Crash” Hurdle

January 11, 2021

3 Free PropTech Tools to Help You Work Like a Pro: #1

December 16, 2020

SVIC Guide: How To Invest In Startups With Angel Syndicates

Home | About Us | Courses | Blog

Categories

JOIN THE FACEBOOK GROUP

Subscribe to Our Monthly Newsletter


© Copyright 2020 - Silicon Valley Investors Club | PRIVACY | Designed by KTS Creative Korner
  • Facebook
  • Twitter
  • LinkedIn
  • Rss
Ryan Lundquist | Sacramento Certified Residential Appraiser | SVIC Intervie... Why Neglecting Your Health Is Killing Your Wealth
Scroll to top