Three Minute Macro Q&A - Part 1

In this video we answer viewer questions in less than 3 minutes about all things macro finance and economics. Topics include saving for retirement, asset allocation in retirement, Federal Reserve policy, how bonds work, stock/bond correlations, recommended reading, FIRE movement and life.

Questions and Chapters:

00:00 Introduction
00:05 What has caused stocks/bonds to become correlated?
02:14 Could we experience negative rates this year?
03:45 Would you take the job as Fed Chief?
05:02 Can you recommend books to learn macro?
07:45 Can you explain constant maturity bond funds?
09:55 What is bond duration?
12:23 Will the next 40 years of stock performance look like the last 40 years?
14:36 How do you think about pension, annuities and Social Security in asset allocation?
17:15 How did you determine the probabilities in your 2023 outlook?
18:50 What is the meaning of life?
21:25 Have children kept you from posting your outside work?
22:16 What could make you look past the economic weakness?
23:44 Why does the Fed focus on rear view mirror indicators?
25:03 Do I need small caps stocks to perform well?
27:55 What are your thoughts on the FIRE movement?

Cullen Roche is the CIO of Discipline Funds, an asset management and financial advisory firm. He has managed billions of dollars in his career and helped thousands of people achieve financial independence. He is the author of the best-selling book "Pragmatic Capitalism" as well as the most widely read macroeconomic paper on the SSRN database "Understanding the Modern Monetary System".

Disclaimer - This is for educational purposes only and is not financial advice.

[disciplinefunds]

I hope you guys enjoy this one. Thanks for all the great questions. Feel free to leave a question here if you want it answered in the next video.

Questions and Chapters:

00:00 Introduction
00:05 What has caused stocks/bonds to become correlated?
02:14 Could we experience negative rates this year?
03:45 Would you take the job as Fed Chief?
05:02 Can you recommend books to learn macro?
07:45 Can you explain constant maturity bond funds?
09:55 What is bond duration?
12:23 Will the next 40 years of stock performance look like the last 40 years?
14:36 How do you think about pension, annuities and Social Security in asset allocation?
17:15 How did you determine the probabilities in your 2023 outlook?
18:50 What is the meaning of life?
21:25 Have children kept you from posting your outside work?
22:16 What could make you look past the economic weakness?
23:44 Why does the Fed focus on rear view mirror indicators?
25:03 Do I need small caps stocks to perform well?
27:55 What are your thoughts on the FIRE movement?

[benitoproto]

Great video Cullen! Here is my question for you: If politics (monetary policy, spending, taxes, ...) laws (related to corporations, trade, proprietary rights...) and companies (big tech related, "de facto monopolies", "New economy"...) has substantially changed the market (let's say in the last 20 years), does any "traditional" framework (trend followers, value investing, diversification, systematic...) of investing in the market make sense? Or the best solution is indexing the market and hold. Thanks 😅

[hugosalinasaliaga]

Great information explained in simple terms. Thank you for including my question.

[tuckfield]

This is great content! Thanks for answering my question Cullen