TIP700: HOW TO INVEST DURING FISCAL DOMINANCE

W/ LYN ALDEN

20 February 2025

On today’s episode, Clay Finck is joined by Lyn Alden to discuss fiscal dominance and its implications for investors. While many value investors claim that following the macro environment isn’t all that important, Lyn makes the compelling case that fiscal dominance has a considerable impact on financial markets overall.

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IN THIS EPISODE, YOU’LL LEARN:

  • What fiscal dominance is and why it matters.
  • Why the S&P 500 is at all-time highs with the backdrop of higher interest rates.
  • Whether Lyn expects US big tech to continue to outperform.
  • How the US will continue to run large fiscal deficits.
  • Why nothing stops the fiscal dominance train.
  • Where we are at in the liquidity cycle.
  • How to invest during a period of fiscal dominance.
  • Lyn’s three major trends to never fade.
  • And so much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: For episode 700 of The Investor’s Podcast, I’m joined by none other than Lyn Alden to discuss fiscal dominance. When it comes to macro analysts, there’s no one I follow more closely than Lyn. While many value investors claim that following the macro environment isn’t all that important, Lyn makes the compelling case that fiscal dominance has a considerable impact on financial markets overall.

[00:00:23] Clay Finck: And her conclusions have helped shape how I think about managing my own portfolio. During this episode, we discuss what fiscal dominance is and why it matters. Why the S&P 500 is at all time highs with the backdrop of higher interest rates, whether Lyn expects US big tech to continue to outperform, where we’re at in the liquidity cycle, how to invest during a period of fiscal dominance.

[00:00:44] Clay Finck: Lyn’s three major trends to never fade in much more. With that, I really hope you enjoy today’s episode with Lyn Alden.

[00:00:55] Intro: Since 2014, and through more than 180 million downloads, we’ve studied the financial markets and read the books that influenced self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Finck.

[00:01:19] Clay Finck: Welcome to The Investor’s Podcast. I’m your host Clay Fink. And today I’m thrilled to welcome Lyn Alden to the podcast. Lyn, welcome back to the show.

[00:01:28] Lyn Alden: Happy to be back. Always happy to talk.

[00:01:30] Clay Finck: So this is actually my first time interviewing you on the podcast, but I’ve been following your work for quite some time, and I must say I’m a huge fan.

[00:01:37] Clay Finck: I had to go back and see what was the first time you were on We Study Billionaires, and it was June of 2020, and you’ve been a guest on the show many times since then, so it’s crazy to think it’s been, coming up on five years, you’ve been in this space doing all the great work that you do.

[00:01:52] Lyn Alden: I enjoy doing it.

[00:01:53] Lyn Alden: It’s certainly been a wild ride. And in many ways, I’ve been doing it longer than that, but only in, in kind of the audio format, have I been doing it since 2020. So before that it was mostly just writing.

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