Milk Road Macro, Released on 6/2/26

Markets are hitting new all-time highs. AI stocks are leading the rally. Investors are still betting on lower rates. So… what could possibly go wrong? Jim Bianco of Bianco Research joined Milk Road Macro to explain why he thinks the market might be massively underestimating one of the biggest risks in the global economy right now: energy. Jim breaks down why the Strait of Hormuz matters way more than most investors realize, how global oil inventories are getting quietly depleted, and why treating structural problems as temporary liquidity issues has been the common thread behind nearly every major financial crisis.

(Timestamps are below the video)

00:00 – Intro
01:32 – Iran Quits Peace Talks: How Will Markets React?
05:40 – Energy Shortage On The Horizon: What’s The Impact?
07:41 – How The Start Of Every Crisis Occurs
11:42 – Kevin Warsh Walking Into A Hawkish Fed, What’s Next?
15:40 – What Is The New Fed Chair’s Stance?
17:21 – Will Warsh Reduce Fed’s Balance Sheet?
23:20 – S&P’s Monster Rally vs The Energy Shock
26:23 – Forward Earnings Forecasts: Will They Deliver?
32:56 – How To Position Around The AI Giga IPOs
38:34 – Sponsor: Kalshi
39:16 – Portfolio Allocation Playbook For The Rest Of 2026
43:04 – Wrap-up

Jim Bianco is President and Macro Strategist at Bianco Research, L.L.C. Since 1990 Jim’s commentaries have offered a unique perspective on the global economy and financial markets. Unencumbered by the biases of traditional Wall Street research, Jim has built a decades long reputation for objective, incisive commentary that challenges consensus thinking. In nearly 20 years at Bianco Research, Jim’s wide ranging commentaries have addressed monetary policy, the intersection of markets and politics, the role of government in the economy, fund flows and positioning in financial markets. Prior to joining Arbor and Bianco Research, Jim was a Market Strategist in equity and fixed income research at UBS Securities and Equity Technical Analyst at First Boston and Shearson Lehman Brothers. He is a Chartered Market Technician (CMT) and a member of the Market Technicians Association (MTA). Jim has a Bachelor of Science degree in Finance from Marquette University (1984) and an MBA from Fordham University (1989).

  financial crisis, geopolitics, investing, iran war, Jim Bianco, market correction, stocks