Consuelo Mack WealthTrack Preview: Guest Francois Trahan, Co-Founder, Cornerstone Macro

FYI:
Regards,
Ted
June 16, 2016

Dear WEALTHTRACK Subscriber,

This week’s guest is telling clients to forget everything they’ve learned about investing, that the old rules are about to fail them and that we are in a new era.

Interested? I am! So I invited Francois Trahan to join us for an exclusive WEALTHTRACK interview.

Financial Thought leader Trahan is Co-Founder and Head of the Investment Strategy team at Cornerstone Macro, an independent macro research and strategy firm he and his partners launched in 2013. Trahan was ranked the #1 Portfolio Strategist by Institutional Investor magazine in 2015 for the fourth year in a row, as he has been for nine out of the last twelve years. As one institutional investor, who voted for Trahan told the magazine: “Francois is not afraid to make a bold call or to change his position when the data indicate that it is right to do so”.

Among his recent bold calls was turning bullish on the stock market late last year, predicting a “global recovery, weaker dollar and higher oil prices” would drive stock markets higher when the exact opposite was happening. Needless to say he turned out to be right as the S&P 500 hit new highs last week.

By far his boldest thesis is a macro one, which he characterizes as the most important in his career. According to Cornerstone Macro’s research, the economy has moved from the era known as the Great Moderation, also known as the “Goldilocks” period during the 1980s, 1990s and until the financial crisis, when inflation was tamed, interest rates declined and household debt increased, to the current era marked by deflation concerns, still declining interest rates and falling household debt.

The Great Moderation also resulted in declining crisis risk - by one measure to the lowest level in 100 years - which totally reversed during the financial crisis, to the current era of elevated crisis risk.

I asked Trahan what these changes mean for the markets and why they require a new investment approach.

In my EXTRA interview with Trahan, available exclusively on our website, he will explain why he is watching for signs of inflation when everyone else is focusing on the risk of deflation. If you’d like to watch the show before the weekend it’s available to our PREMIUM viewers right now. You can also find the One Investment picks of our guests and my Action Points there.

Thank you so much for watching. Have a happy Father’s Day this weekend! Make the week ahead a profitable and a productive one.


Best Regards,

Consuelo