WTFinance, Released on 6/11/23 (Recorded on 6/9/23)
On todays episode of the WTFinance podcast I had the pleasure of speaking with Lyn Alden, Founder of Lyn Alden Investment Strategy. During our conversation we spoke about macro drivers impacting markets, potential for a liquidity crisis driven by the Treasury, the risk of higher inflation for longer, what this means for the debt end game and how Lyn is constructing her portfolio to mitigate these risks. I hope you enjoy!
0:00 – Introduction
1:05 – Macro drivers impacting markets
2:50 – Current Treasury funding challenge
6:05 – Correlation between liquidity and market performance
7:20 – Where will liquidity issues show up first?
8:40 – Lyn’s base case for treasury funding
12:25 – Repeat of March Bank Collapses?
14:10 – Commercial real-estate another challenge for banks?
16:05 – Is todays economy more similar to the 1940’s than 1970’s?
20:30 – Japanification or financial repression?
23:40 – What is the current debt end game?
27:05 – What would Lyn do if she was the Fed Chair?
28:35 – What does Lyn want to own?
30:35 – Macro, Geopolitics & valuation weightings in investing
32:25 – How does Lyn construct and manage risk in portfolio?
33:30 – One message to take away from conversation?
Lyn Alden is the founder of Lyn Alden Investment Strategy. Lyn has a bachelor’s degree in electrical engineering and a master’s degree in engineering management, with a focus on engineering economics and financial modeling. She worked as an electrical engineer at an aviation facility, and over the course of a decade worked her way up from being an intern to being the lead engineer and running the day-to-day operations and finances of the facility, before retiring early at age 33 with financial independence. Since then, Lyn has been a full-time investor and independent analyst. Her latest book is Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better.