CNBC

Talking about rates, markets and AI

I was on CNBC on Tuesday, following up on the recent note “Where are the Customers’ Yachts?”

Grateful for a long segment which let us range across a wide range of issues and also that this clip covered quite a lot of it. (Click on image to play).

The key point not in the previous note was an old one - that interest rates impact economies differently depending on whether they are savers or borrowers. Completely obvious, but not part of the economic orthodoxy. When rates all went in the same direction regardless of the economy, so did markets. Now they are diverging, so too will markets, which is good news for active managers and risky for so called ‘low risk’ (but really just low cost) trackers.