Amrita Roy and Rob Isbitts are both optimistic about gold and T-bills. They discuss the inflationary and deflationary forces at play, macro volatility, and central banks investing in gold. They also talk about the importance of liquidity in driving the market forward. This conversation is from a recent Investing Experts podcast.
Rob Isbitts talks about Amrita Roy’s focus on macro market analysis and tech stocks. They both share a bullish outlook on T-bills and gold. Amrita explains that in the current macroeconomic environment, T-bills offer a risk-free rate of 5.25%, making them a solid choice for cash allocation. She believes that gold is also a good investment due to the ongoing tug of war between inflation and deflation forces. Amrita sees potential for gold in the long term, especially as central banks increase their holdings.
Amrita discusses the current macroeconomic landscape, highlighting the growing divide between companies with pricing power and those struggling financially. She emphasizes the importance of being a Pragmatic Optimist in building a balanced portfolio. Amrita believes that gold is well-positioned due to macro volatility and central banks’ interest in the precious metal. She also mentions the correlation between gold and the 10-year treasury bond yield, indicating a bullish case for gold in the current environment.
Amrita challenges the mainstream optimism surrounding Fed rate cuts and inflation, suggesting that the bond market may play a significant role in shaping future market trends. She stresses the importance of liquidity as the driving force behind market movements.
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