On today's episode of "On the Margin", Darius Dale CEO of 42 Macro joins the show for a discussion on the Fed's tightening cycle.
By tracking the effects of liquidity on financial markets, Darius shares his framework for assessing the current tightening cycle the Fed is embarked on in their quest to fight inflation. While 2020 and 2021 saw markets soar to new highs in a liquidity cycle & growth upturn, 2022 has seen the opposite as the liquidity cycle downturns. In order to understand the market cycle, you must first understand the liquidity cycle, but to hear that, you'll have to tune in!
--
Follow Darius: https://twitter.com/@42macroDDale
Follow Mike: https://twitter.com/MikeIppolito_
Follow On The Margin: https://twitter.com/OnTheMarginPod
Follow Blockworks: https://twitter.com/blockworks_
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
Circle’s USDC is one of the most trusted and widely used stablecoins in the digital asset industry. Check out their Transparency Hub at circle.com/transparency that outlines everything from links to USDC weekly reserve reports, monthly attestations, and blog posts written by their executive team highlighting how and why USDC was built the way it is.
--
Referenced In The Show:
Progressing Through The Tightening Cycle: https://www.bridgewater.com/research-and-insights/an-update-from-our-cios-progressing-through-the-tightening-cycle
--
Timestamps:
(00:00) Introduction
(00:57) The Liquidity Cycle
(07:58) Where Are We In The Liquidity Cycle?
(16:12) The Fed Is Looking In The Rear View Mirror
(19:24) Progressing Through The Tightening Cycle
(24:08) Circle Ad
(25:27) Tracking The Inflation Cycle
(34:17) Measuring Liquidity Using The GRID Framework
(40:45) Final Thoughts: Darius' Outlook On Markets
--
Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.