Broadcast

January, 18th 2021

Resonance FM: The Naked Short Club

Interview with Fasanara Capital

 

How to fit 60/40 portfolios for a Digital Future

RECAP:

  • Fugazi Markets: buy at whatever price, trend/central banks are your friends

  • Evidence of market craziness mushrooming: density of market nutcases is informative. It is a seismograph of compounding market instability

  • Transitioning to a new market system. The next crisis could resemble the 1971’s End of Bretton Woods more than Dot.Com or GFC. The new capital markets emerge from the ashes of the old.

  • The 60/40 balanced portfolio is unsustainable: alternative sources of income are both badly needed and available in the digital world. At scale.

  • Future-proofing 60/40 portfolios with high-tech infrastructure + data centricity. Embrace the Digital Future today.

  • Two mega trends: Digital Lending (FinTech innovation, ‘’Platformification’’ of credit, AI-supremacy) + Digital Assets (cryptos, blockchain, DeFi).

  • FinTech vs DeFi: tech-enhance the legacy financial infrastructure VS reinventing it from the ground up.

  • Digital disruption is the emerging property of a system in chaotic transitioning to a new stable state.

  • Regulation to come (in whatever form) as final seal of approval for emerging technologies, leading to mass adoption

Read also our research on Digital Future at this link