This podcast episode examines the evolving landscape of the economy and monetary policy, where the traditional understanding of market reactions to economic news is shifting. Alf discusses the impact of the Federal Reserve's tight monetary policies and prolonged economic lags, assessing their implications for risk assets and predictions for possible rate cuts. He emphasizes a significant regime change in market dynamics, where bad news may revert to having adverse effects, and offers insights on strategic portfolio positioning amid potential recessionary pressures, highlighting the importance of diversifying between defensive and aggressive investments.
