The podcast features Tavi Costa, a portfolio manager at Crescat Capital, who shares his insights on how to navigate the current inflationary era and mitigate risks associated with historically high valuations. The discussion revolves around the global macro outlook, investment ideas, and viewer questions.
- Global Macro Outlook: Tavi Costa presents a bearish outlook on the global economy, especially the US. He believes that the current economic strength might be the tail end of an Austrian crack-up boom that could give way to a severe bout of weakness.
- Investment Ideas: Costa suggests three investment ideas to mitigate risk in this high valuation environment. These include:
- Long iShares MSCI Brazil ETF: Costa believes that Brazil, being a neutral geopolitical player, could play a larger role in creating relationships with developed economies.
- Long SPDR S&P Oil & Gas Exploration & Production ETF: Despite the recent downturn in oil prices, Costa sees potential for recovery and growth in the oil sector.
- Long SPDR Gold Shares ETF: Costa views gold as a defensive asset that could perform well in the event of a recession. He believes that gold is likely at the beginning of a third gold cycle.
- Viewer Questions: Costa addresses viewer questions, including his investment in Gerdau (GGB), a producer of steel in the Americas. He considers GGB to be an interesting position that is positioned to perform well if there is a construction boom in most of the developed economies.
- Bullish: Costa is bullish on the iShares MSCI Brazil ETF, SPDR S&P Oil & Gas Exploration & Production ETF, and SPDR Gold Shares ETF. He believes these assets can provide a hedge against potential economic downturns and high valuations.
- Bearish: Costa expresses a bearish sentiment towards the global economy, particularly the US. He anticipates potential macroeconomic headwinds and suggests that the current economic strength might be the tail end of an Austrian crack-up boom.
- Neutral: No neutral sentiment was explicitly expressed in the podcast.