Manage episode 363937762 series 2656707
Following the GFC, the world embarked upon a monetary policy experiment the likes of which had never been seen before.
Having read the history books and being aware of the economic and financial malaise that lingered for decades post the Great Depression, and like a bout of long-COVID, central bankers were desperate to ensure it didn’t happen again.
So they pumped the system full of liquidity. Quantitative easing, loose balance sheets, low interest rates, you name it, the list went on. Then, when the pandemic hit, they pumped more liquidity again, and this time, governments got involved as well.
Well, the experiment is now well and truly over. Inflation has soared, recessions are imminent, and some of the distortions of all that liquidity are being reflected in the stock market. The tide is going out, and we’re going to find out just who has been swimming naked.
Fenton and Roger talk about hunting for shorts in the current environment, whether rate hikes are behind us and some stocks they like, both longs and shorts.
Note: This episode was filmed on Wednesday 17 May 2023. You can read an edited transcript below: