In episode 112, Alex Proimos speaks with Corey Hoffstein, co-founder and chief investment officer at Newfound Research.
This episode goes into Corey’s background and the framework supporting the liquidity cascade thesis. We discuss the tightening of the financial and real economy through the “wealth effect” as investors are forced to use markets as savings vehicles. We explore the evidence of market reflexivity due to the financialisation of the markets, the meme stock mania, and the greater prominence of the target date/life cycle funds. Finally, we talk about the dilemma that asset allocators face in this new market regime where asset classes are increasingly correlated.
