Beware the Market's 'Expectations Bubble'

Stansberry Investor Hour

On this week's Stansberry Investor Hour, Dan and Corey welcome Bob Elliott back to the show. Bob is the co-founder, chief investment officer, and CEO of Unlimited. The investment firm uses machine learning to replicate the index returns of hedge funds, venture capital, and private equity. Bob explores a wide range of topics in the podcast, from counteracting inflation with certain investments to the worsening future of globalization.

Bob kicks off the show by talking about the importance of holding yourself accountable with investing and about bonds in relation to the Federal Reserve's next moves. Many investors are expecting an aggressive rate-cutting cycle, but as Bob points out, the Fed may not live up to those expectations. He also discusses the flaws of the 60/40 portfolio in today's market, why you should hold gold as part of your portfolio, and two primary factors that could contribute to a long-term inflationary environment. (1:02)

Next, Bob explores ways to properly balance your portfolio to preserve wealth and minimize volatility. This leads to a conversation about Treasury inflation-protected securities. Bob describes why they're a better investment today than they were a few years ago and what gives them an edge over nominal bonds. After, he discusses the supply-and-demand imbalance in natural resources, oil's supply sensitivity versus precious metals, and the green-energy movement. (20:57)

Finally, Bob makes his case for investing in natural resource companies and warns listeners about roll costs when trading in the futures market. He then talks from a macro perspective about productivity in relation to AI. As he explains, AI has not yet led to large productivity advances like we saw with the advent of the personal computer. (37:58)