102 A Sea of D's in 2022 w/ Darius Dale and Mary Hagerman

Insight is Capital™ Podcast

Darius Dale, Founder & CEO, 42 Macro LLC, and Mary Hagerman, Portfolio Manager, Raymond James (our guest advisor panelist) joined us on Raise Your Average for a full market macro overview. Darius Dale takes us through the inner workings of his and his firm's "GRID" macro framework as well as macro-forecast modelling framework. We discuss his outlook at the time for the markets and economy, and the inflationary and simultaneously, deflationary dynamics that are causing confusion surrounding whether inflation might be pernicious or temporary.

The key takeaway from this conversation is that we are likely entering a period of heightened volatility as the market reacts to what could be a temporary inflationary pulse, as Dale's framework suggests there is a "sea of D's" or (D)eflationary signals in 2022. It remains to be seen what the half-life could be of a 'reflation' trade (that favours for example value stocks vs. growth stocks) as we progress to toward the second half of this year.

Darius Dale's framework provides a fully quantified view of all market fundamentals - what he calls "Quantamental" – and it provides a magnificent view from 30,000 feet. Among the highlights of our conversation was a series of 3 charts that demonstrate quantitatively and eloquently the zeitgeist of inequality in the U.S., which gave rise to the Fed's disproportionately large stimulus reaction during the pandemic and how that has given rise to the inflationary pressure boundaries we are currently breaching. We also discuss the nuance of the question, "Is it inflation, or is it inflationary?"

Where to find Darius Dale:

Darius Dale on Linkedin

42 Macro LLC

Darius Dale on Twitter

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Where to find the Raise Your Average crew:

ReSolve Asset Management

ReSolve Asset Management Blog

Mike Philbrick on Linkedin

Rodrigo Gordillo on Linkedin

Adam Butler on Linkedin

Pierre Daillie on Linkedin

Joseph Lamanna on Linkedin

AdvisorAnalyst.com

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This episode was recorded November 2021

"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger

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