On today’s episode of “The Macro Trading Floor,” Andreas and Alfonso welcome Mikael Sarwe, director and head of Strategy Sweden at Nordea, to the show.
Sarwe argues that with collapsing liquidity driving down the money supply, the ability of market participants to take risk is greatly reduced, and as such the mid-term outlook for risk assets remains poor. Sarwe explains that he remains bond volatility to remain high, but that nonetheless he expects longer-duration bonds to significantly outperform equities over the coming six to nine months. To hear Mikael’s actionable trade idea, you’ll have to tune in!
This episode is sponsored by Saxo Bank. Saxo Bank offers unparalleled market coverage across fiat, crypto and metals. Moreover, they provide free currency subaccounts and competitive interest rates on deposits in local currencies. Learn more at https://goto.saxo/macrofx
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00:00 Intro
00:44 U.S. Inflation Report
09:05 Is The Bond Market Broken?
13:39 Mikael Sarwe's Recession Thesis
19:04 When Will Central Banks Stop Hiking Interest Rates?
23:33 U.K. Gilts and the Bank of England (BOE)
26:39 Outlook on Bonds
33:22 The Dollar
37:34 The Trade
39:40 Analysis Of The Trade
49:55 Outro
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Disclaimer: Nothing discussed on The Macro Trading Floor should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
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