Jan Van Eck (@janvaneck3), CEO of Van Eck Funds, one of the world’s largest sponsors of exchange-traded funds (ETFs), joins Julia La Roche on episode 33 to discuss the next big investment opportunity in fixed income. 

During the conversation, Jan explains why we’re entering a period where bonds will outperform equities. That’s why he thinks investors must be majority weighted in fixed income. He also points out that too many investors are too focused on the next equity rally since they’re accustomed to the Fed put. 

The conversation also touched upon Bitcoin and digital assets amid the FTX fiasco. Jan noted that Bitcoin had demonstrated an ability to withstand a lot of tests. He also shared his thesis on the digital asset and why it’s a store of value against paper money. 

Founded in 1955, VanEck was one the first U.S. asset managers to offer investors access to international markets, setting the tone for identifying asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange-traded funds in 2006, and digital assets in 2017. VanEck manages approximately $70 billion in assets, including mutual funds, ETFs and institutional accounts.

0:00 Intro

0:33 Macro view

1:55 2022 can be summarized in one sentence

2:43 Fixed income can and should be a bigger part of a portfolio

3:02 Thoughts on the 60/40 portfolio

4:50 Where in the fixed income universe?

7:22 Views on the economy

9:16 Outlook for equities

10:00 Inflation may be more persistent than people think

12:30 Is the 2% target unrealistic

13:12 Labor market

14:12 Outlook for commodities

16:35 Don’t over chase equities

19:00 Why fixed income can be an under-appreciated part of a portfolio

20:50 Using history to identify all potential outcomes

23:23 Powell will make sure he slays inflation

26:11 FTX one of the last shoes to drop in the deleveraging of crypto

27:47 Knock-on effects from FTX

29:00 The good news for investors in crypto

30:00 Journey into digital assets, Bitcoin

31:24 Bitcoin Futures ETFs

32:10 Spot EFT

35:00 Thesis on Bitcoin

38:26 Biggest risks

41:00 3 big drivers on financial markets

43:00 Psychology of investing