Market Froth, Anti-Bubbles, and the Consequences of Unparalleled Monetary Easing — Live with Diego Parrilla

Published on
February 15th, 2021
Duration
75 minutes

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Market Froth, Anti-Bubbles, and the Consequences of Unparalleled Monetary Easing — Live with Diego Parrilla

Live ·
Featuring Diego Parrilla and Raoul Pal

Published on: February 15th, 2021 • Duration: 75 minutes

Diego Parrilla, portfolio manager at Quadriga Asset Managers and the author of “The Anti-Bubbles,” weighs in on the ongoing conversation around bubbles in this interview with Real Vision CEO and co-founder Raoul Pal. Parrilla goes in-depth on where he thinks markets are providing the most opportunity as well as where they’re unveiling risks, and he breaks down his unique portfolio management style to navigate the current environment. He also considers whether monetary policy has reached its limits in the midst of unparalleled monetary easing from global central banks. Parrilla and Pal also will be answering questions from the audience.

Comments

Transcript

  • DG
    Darren G.
    27 February 2021 @ 04:32
    Such great insight into the macro environment and the concerns we should have. Really really enjoyed this one. Loved the analogies too!
  • AF
    Alex F.
    22 February 2021 @ 20:58
    Great interview and an other guy that has sense about the Bitcoin side of things.. 🙂
  • RH
    Rob H.
    21 February 2021 @ 22:22
    It would be nice if they checked the quality of the recording spaces. Diego sounds like he's in an echo chamber. Still a great conversation but very hard to listen to. I'm trying to give constructive feedback.
  • JK
    John K.
    20 February 2021 @ 10:44
    Diego is brilliant and his macro views are very helpful. Having said that I can see from many macro investors such as Diego that they tend to generalize and lump-sum crypto assets as one single investment and that is flawed approach. Crypto assets such as Bitcoin, Ethereum, Polkadot and etc. all have different attributes and unique technical characteristics that need to be understood before considering them as investments. Raoul is one of very few macro investors who gets the intricacies. Crypto assets will have ups and downs but they will provide generational investment opportunities.
  • PR
    Prashanth R.
    18 February 2021 @ 00:05
    Thanks a lot Raoul and Diego for taking the time to educate us retail traders. It would be great if RV could do a video on the basics of options, options strategies and how to use options in different scenarios. I may be asking for a lot, but hey, if you don't ask you don't get :)
    • PC
      Peter C.
      19 February 2021 @ 02:42
      the real life VIX examples were excellent
  • YW
    Yowshi W.
    17 February 2021 @ 23:36
    Thanks Diego.. though you are very close-minded re bitcoin.. Try to use it and you will understand why
    • LP
      Louis P.
      18 February 2021 @ 16:19
      Yowshi: Diego wrote a lengthy piece on LinkedIn where he is exposing his thoughts fully. I think his written piece covers the topic than this interview format allowed. Cheers ! LP
  • HH
    HODL H.
    18 February 2021 @ 01:19
    Dude is a beast, always such a courteous dude as well to market participants
  • KB
    Ken B.
    17 February 2021 @ 19:17
    Another great interview with Diego!!!
  • WM
    Will M.
    17 February 2021 @ 18:41
    Always enjoy Diego's thesis. Doesn't give me a lot of hope for the future though..
  • RR
    Raoul R.
    17 February 2021 @ 18:39
    what about options on AUDJPY? As vol on FX has collapsed and puts are not expensive?
  • RR
    Raoul R.
    17 February 2021 @ 18:33
    or call spread for very short term (less than 1 month) as the curve goes Into backwardation when there is a big move in SPX
  • RR
    Raoul R.
    17 February 2021 @ 18:32
    better to buy VIX Futures than the call spread when VIX is below 23.
  • HK
    Henrik K.
    17 February 2021 @ 16:42
    Interesting an enjoyable; thanks! We can study history and post rationalise all we want but I suspect that Bubbles eventually pop due to either an unforeseen black swan event or just a sudden change in sentiment that catches most people by surprise which is then later attributed to some specific factor so that we can pretend to understand what happened and use this to justify the "its different this time" rationale next time round..... Perhaps we just haven't had our Lehman moment yet. The question that is worth examining closer is how Central Banks will react next time we have a very severe draw down? Are there scenarios where perhaps they don't step in quite as decisively and actually decide to let the bubble deflate? Under what conditions might central banks actually be incentivised to let the market go? I understand that is what Japan's central bank did at the end of 1980s having pumped the bubble with directed credit for decades? On the subject of gold, I agree with the comment below that gold should be considered more like a Brazilian defender with the ability to occasionally go forward to join the strikers and create positive outperformance..... But as of late I am getting the feeling that gold is more David Luiz than Roberto Carlos!
  • SM
    Stephen M.
    17 February 2021 @ 15:21
    Great interview, really insightful and thought provoking
  • Sv
    Sid v.
    17 February 2021 @ 14:29
    Bit Coin, Bit coin Gold, Bit Coin cash, and on and on and on.................. no scarcity
  • RA
    RAMI A.
    17 February 2021 @ 07:47
    Brilliant is an understatement. I had already come to the conclusion that i needed to start happily throwing money at vix options in this environment. This interview will help me sleep better :)
  • bf
    bill f.
    17 February 2021 @ 00:34
    i think crypto has opened up currency as it should be : a primordial soup where currencies are competing for who is the best. just because there's lots of them doesnt mean one is diluting the other. i really enjoyed the interview with bot Raoul and Diego Saying important things about risk.some questions: are exhanges becoming the new banks?. will banks become exchanges?
    • RB
      R B.
      17 February 2021 @ 03:03
      There will be a choice. Become your own bank, use an established bank, use a decentralized exchange, etc.
  • BG
    Brent G.
    17 February 2021 @ 00:27
    great interview. His views mirror schiff a lot but in a more likeable less schiffish way.
  • BT
    Billy T.
    16 February 2021 @ 22:25
    At 19:26, Diego mentions: "collapse in 30yr treasuries will come..." He means yield collapsing right? just checking...
    • JM
      Justin M.
      16 February 2021 @ 23:28
      No. Price of the bonds falling causing the yield to go up.
  • JS
    John S.
    16 February 2021 @ 21:36
    Maestro Diego - It is a honor to listen to you. About your book anti bubbles I have been trying to find an Spanish version. Are you planning to publish one in Spanish any time soon. I would like also to make a football / soccer comparison as well. I am from Spain so you might understand why. In my opinion, gold not only is a defense in this environment gold has the potential of a Roberto Carlos style of playing. Surely you will understand this comparison. Gracias and hopefully you will be at RV Plus at least one time more this year. Thank you Raoul for being yourself the one discussing with Diego. Greetings.