The Meb Faber Show
Welcome to The Meb Faber Show, where the focus is on helping you grow and preserve your wealth. Join us as we discuss the craft of investing and uncover new and profitable ideas, all to help you grow wealthier and wiser. Better investing starts here.
Citi's Dirk Willer on Why You Buy the Bubble | #654
My guest today is Dirk Willer, Head of Global Macro, Asset Allocation and Emerging Market Strategy at Citi. In today’s episode, Dirk says we’re in an AI bubble and why that’s a reason to buy, not sell. He shares why the bond selloff relates to growth rather than deficits, how the Warsh Fed echoes Greenspan and why Brazil is one of his favorite markets. To close, Dirk shares his best hedges for when the bubble finally bursts.
Key Points
- Bubbles can be identified by price action rather than valuation alone, and the key is to stay invested while recognizing that the eventual unwind can be sharp and painful.
- The Fed, liquidity, and the shape of the hiking cycle matter more for market turning points than headline rate levels, especially for bonds, gold, and the back end of the curve.
- Global opportunities still cluster around the AI trade, with U.S. equities, Taiwan, Korea, and copper benefiting most while Brazil stands out as a more idiosyncratic emerging market opportunity.
Follow Dirk: LinkedIn
Resources:
Trading Global Macro Markets (The Wiley Finance Series)
Sponsors:
Upwork is the world's largest human and AI-powered freelance marketplace to hire top talent—trusted by businesses and professionals worldwide.
Chapters
| 0:00 | |
| 3:52 | |
| 9:10 | |
| 9:51 | |
| 13:45 | |
| 20:25 | |
| 25:10 | |
| 32:06 | |
| 32:46 | |
| 40:00 |
Transcript
Loading transcript...
- / -