The Lopsided Expansion | Aahan Menon on Why Long-Term Forecasts Don’t Make Money, And The Growing Divergence Between AI CapEx And Labor Market

In this episode of Monetary Matters, Jack Farley interviews Aahan Menon of Prometheus Macro to discuss his current market positioning and economic outlook. Aahan reveals a shift towards a more risk-off stance in his model portfolios, driven by concerns about frothy U.S. equity markets and a divergence between GDP growth and the labor market. He elaborates on the unsustainability of relying solely on AI CapEx for economic growth and emphasizes the importance of managing the path to a forecast rather than just having a long-term view. Aahan also shares insights on various asset classes, including bonds, commodities, and housing, and highlights the value of granular, real-time economic understanding for generating alpha. He differentiates Prometheus Macro's approach by focusing on actionable, high-Sharpe ratio strategies derived from institutional-level insights, offering model portfolios tailored for individual investors.