Global Macro Update

The cost of college has risen so much that more than half of Americans no longer think a college education is "worth it." We have reached the point where the cost of a four-year degree will likely be the second-largest expenditure in your lifetime, second only to your house. Students are literally mortgaging their futures to pay for college. What happens next for higher education, and how should prospective students and their parents weigh their options? These are the topics of this week's Global Macro Update. Economist Dr. Gary Shilling joins us with his thoughts on the cost of higher education and alternatives to the college track.

Artificial intelligence (AI) is the lifeblood of the technologies driving today's global disruptions. And 2023 is the year that AI has been catapulted from novel idea to appearing on everyone's radar. The AI narratives span from the promise of a George Jetson future to fears of a dystopian takeover by AI-empowered robots—and everything in between. To sort this all out, I talked with AI expert Stephen McBride for his take on where we are today, and how to spot the industries and occupations that will be most affected.

The world is not going to return to its pre-pandemic business as usual. Instead, we are currently in a transition phase that few understand. That's why I asked Bruce Mehlman, partner at Mehlman Consulting, to join me on Global Macro Update to talk about what the new normal will look like. Bruce says we face four main challenges—what he calls The Four Addictions—as we navigate a period of tough domestic choices and geopolitical realignments. He explains what they are and how they are inextricably linked.

The debt ceiling has been dumbed-down to a political debate of right vs. left. But the ramifications of the debt standoff are already being felt in the debt markets, and it's costing us billions of dollars. In this episode of Global Macro Update, I talk with David Kotok, Chairman and Chief Investment Officer at Cumberland Advisors. We discuss the costs of brinkmanship, the risks posed to money market funds, the geopolitical side effects, and where he sees bargains in the bond market.

The Fed seems determined to crush demand and slow inflation. And it's having an impact on more than just banks and the housing market. The office market is also struggling with spiking interest rates and scarce liquidity. In this episode of Global Macro Update, I talk with Russell Ingrum and Brad Zampa, two senior partners at CBRE, a global leader in commercial real estate services and investments. We discuss the current state of the office properties market. For more top-level insights like this, I invite you to attend our live, online Strategic Investment Conference. Hear over 40 experts share their best market ideas and their warnings about the economy and geopolitics. More information is available here.

You may remember the acronym MBS from the '07–'08 financial crisis. Michael Lewis's book and then movie, The Big Short, taught us all about how the mortgage-backed securities (MBS) market almost blew up the global financial system. Well, today, mortgage-backed securities are back in the news…

In this week's episode of Global Macro Update, Barry Habib, founder and CEO of MBS Highway, joins Ed D'Agostino to discuss the role of mortgage-backed securities in Silicon Valley Bank's failure—and if the other shoe will drop for the rest of the banking sector.

To hear more from Barry Habib, along with about 50 other financial and economic experts, click here for info on Mauldin Economics' premier event, the Strategic Investment Conference.

The economy, as any investor knows or will quickly learn, is not the same as the stock market. What's happening today resembles the Great Inflation of the 1970s. Talk of stagflation, recession, and hard and soft landings—it can make your head spin to see how quickly things have unfolded.

In this week's episode of Global Macro Update, Dr. Ed Yardeni, president of Yardeni Research, joins Ed D'Agostino to discuss today's urgent storylines, as well as the two sectors Dr. Yardeni favors for long-term investors and how turbulent times can lead to a future led by productivity.

To learn more about Dr. Ed Yardeni, you can read his bio here. It includes links to his book publications, a complimentary trial of his research service, and his LinkedIn newsletter.

Inflation in the system is much stickier than people anticipated, with corporations passing on prices to the everyday consumer. It begs the question: How high can prices go before there's a breaking point when consumers begin to push back?

In this week's episode of Global Macro Update, Samuel Rines, managing director of Corbu LLC, joins Ed D'Agostino to discuss how today's inflationary environment boils down to the acronym POV and factors into the Fed's next moves.

They also cover the craziness of "revenge travel," widespread tech layoffs, low unemployment, rising wages due to the "Walmart Effect," and how Middle America continues to play catch-up.

For even more of his insights, make sure to follow Sam on Twitter.

"The world is out of balance. The disruptive changes that were already rewiring the economy, geopolitics and US culture accelerated over the past 3 years, and a predictable backlash began. But we are nowhere close to a 'new normal.'" In this week's episode of Global Macro Update, Bruce, who is the head of Mehlman Consulting, a bipartisan Washington, DC lobbying firm, talks with Ed D'Agostino about the current political and geopolitical landscape... the effects of partisan division... and what to watch for in the next years. Don't miss it. Click here to view Bruce's fascinating infographic, "Disequilibrium."

High interest rates have a silver lining: Savers are making money again. What opportunities are currently out there for fixed-income investors? Talking to show host Ed D'Agostino, Jason Brady, president and CEO of Thornburg Asset Management, gives Global Macro Update listeners the inside scoop. Have the markets returned to normal? Is now the time to invest in municipal bonds or distressed debt? Why the Fed's thinking that 2020 was like 2008 was a grave error... and the number-one mistake investors make when they see an inverted yield curve like we have now. Don't miss this week's episode of Global Macro Update—listen now!