TIP815: LYN ALDEN ON WHY FISCAL DOMINANCE

CHANGES EVERYTHING

TIP815: LYN ALDEN ON WHY FISCAL DOMINANCE CHANGES EVERYTHING

16 May 2026

In this episode, Stig Brodersen welcomes back renowned macroeconomist and bestselling author Lyn Alden. They explore fiscal dominance, gold, energy markets, and the shifting role of the U.S. dollar in a more fragmented global economy. Lyn also explains why higher interest rates may no longer slow inflation the way they once did, and what this changing macro regime means for investors.

SUBSCRIBE

IN THIS EPISODE, YOU’LL LEARN:

  • Why you can’t ignore macro in the era of fiscal dominance 
  • How to think about treasuries and gold with respect to their dilution rates
  • Who benefits and who loses from a strong dollar domestically and internationally 
  • Who are the winners and losers from higher oil prices across countries and sectors
  • Whether you are benefiting from fiscal deficits as an investor and consumer
  • Why price controls won’t solve the problem
  • Why the biggest companies essentially short the US dollar
  • And so much more!

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

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.

[00:00:03] Stig Brodersen: What happens to your portfolio when the rules of the markets change? In this episode, I’m once again joined by the always thoughtful Lyn Alden to discuss why investors are entering a new era of fiscal dominance across the board, where persistent deficits, rising debt levels, and geopolitical fragmentation are starting to reset markets in ways investors are not prepared for.

[00:00:24] Stig Brodersen: We explore what this could mean for the U.S. dollar, gold, equities, and why traditional macro relationships no longer work the way they did in previous decades. If you’re an equity investor trying to position yourself for a world of structural inflation and growing pressure on the global financial system, this is an episode you don’t want to miss.

[00:00:47] Intro: Since 2014 with more than 200 million downloads. We have interviewed the world’s best investors, studied deeply the principles of value investing and uncovered many compelling investment opportunities. We focus on understanding businesses and intrinsic value investing accordingly, and sharing everything we learn with you. This show is not investment advice. It’s intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investment in the securities discussed. Now for your host, Stig Brodersen.

[00:01:31] Stig Brodersen: You are listening to The Investor’s Podcast, and I’m here with Lyn Alden. Lyn, calling you a fan favorite, that would be quite the understatement. How are you?

[00:01:41] Lyn Alden: I’m great. It’s always happy to be back. Love the show.

[00:01:44] Stig Brodersen: It’s kind of interesting, we are taking sort of a pivot here recently and we are talking more about equities and I’ve talked to quite a few people about this pivot and the feedback I get is a bit surprising to me because what they’re telling me is that’s all fine and well, but please keep on bringing Lyn back to talk about macro.

[00:02:01] Stig Brodersen: So, and that’s kind of like whenever you hear that from someone who’s very micro and you’re like, you are sort of like, especially if you come from the Church of Buffett and Munger, you’re supposed to say, oh, we don’t want to hear about macro. So whenever hardcore value investors are telling you, yes, but still please talk to Lyn, that’s, at least in this echo chamber of value investing that I’m in, the highest praise you can get.

[00:02:24] Lyn Alden: Of course, and I think it’s a symptom of the age we’re in. I’ve been describing this as a macro-heavy decade, and so the advice to either ignore macro or include macro can very much depend on the times, I think, to Buffett and Munger’s point.

[00:02:36] Lyn Alden: I think during that, that four decades of falling interest rates, from the early eighties all the way up basically to, to the global financial crisis and thereafter really to 2020 in, in some ways you could mostly, if you’re in the U.S. at least, you could mostly ignore macro focus on value or growth or reasonable price investing or even passive and just do exceptionally well.

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

BOOKS AND RESOURCES

Some of the links on this page are affiliate links or relate to partners who support our show. If you choose to sign up or make a purchase through them, we may receive compensation at no additional cost to you.

NEW TO THE SHOW?

SPONSORS

Support our free podcast by supporting our sponsors:

References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them.

CONNECT WITH STIG

CONNECT WITH LYN

PROMOTIONS

Check out our latest offer for all The Investor’s Podcast Network listeners!

WSB + BFF + RWH Promotions

The Intrinsic Value Newsletter