Is the US Equity Bullrun Over? With Lyn Alden - WBD455

Location: Remote
Date: Wednesday 26th January
Company: lynalden.com
Role: Macroeconomist


January 2022 has been tough for Bitcoiners, a lacklustre end to
2021 has been followed by a drawdown. However, the stagnation of
Bitcoin’s price has mirrored wider macroeconomic issues as both
bond and equity markets react to inflationary pressures. This has
resulted in a flurry of criticisms that Bitcoin is not the
inflationary hedge it has been purported to be.


Yet, the economic rationale that drove Satoshi’s development of
Bitcoin is manifest. Decades of relaxed monetary policy, an era
of cheap money, has resulted in significant excess capital being
generated. A lot of this has been ploughed into US equities. Lyn
Alden’s latest newsletter likens the stock market performance
over the last 40 years to a sponge soaking up water.


Well, that sponge seems to be saturated. The US equities now
represent over 61% of the market capitalization of all global
stocks. At the same time, inflationary pressures are forcing the
hands of governments around to world to raise interest rates.
Fears of stagflation abound. The sponge is about to get wrung
out.


Economic history shows these are the periods when hard money
becomes dominant. That’s why hodlers continue to hodl.


In this interview, I talk to macroeconomist and investment
strategist Lyn Alden. We discuss the signals pointing to the end
of the equities supercycle, the risks of energy prices continuing
to drive inflation, the IMF and El Salvador, central banks being
at an impasse, and Bitcoin’s next play.