Bubbles and Anti-Bubbles

Featuring Diego Parrilla

How can investors position themselves to profit from irrational markets? Diego Parrilla of Quadriga Asset Management explores the opportunities behind bubbles — and their funhouse mirror opposite, anti-bubbles — which result from artificially suppressed prices. Filmed on October 16, 2018 in New York.

Published on
24 October, 2018
Topic
Financial System, Macro, Technical Analysis
Duration
41 minutes
Asset class
Equities
Rating
38

Comments

  • RK

    Roger K.

    11 11 2018 19:54

    0       0

    If the evidences are presented that would have been helpful.

  • DY

    Dmytro Y.

    10 11 2018 10:10

    0       0

    Diego, thank so for the interview!
    Can I ask this:
    - if I understand correctly one possible trade idea is to short high yield bonds? Is it still okay to do and what is the vehicle for a smaller retail sophisticated person to do?
    - speaking of Gold do you prefer Physical or ETF or gold miners. Just a quick general answer would be greatly appreciated. Thanks

  • WS

    Will S.

    8 11 2018 23:19

    0       0

    I see Diego responded below, so I will hope he reads this and responds...Diego: When you mention insurance, what product or what exactly are you using as insurance? Are you able to share this? Thanks.

  • WM

    Will M.

    4 11 2018 15:14

    1       0

    Very coherent simplified explanations. Thanks Diego for a quality and straightforward explanation supporting the "its all one big trade" perspective. Just bought the book.

  • Kv

    Kristian v.

    3 11 2018 07:15

    1       0

    One of the most logical and air tight pieces of analysis I’ve seen on RV. Fantastic!

  • CD

    Chris D.

    1 11 2018 10:20

    4       0

    One of the best interviews I have seen here on RV. Just great logic, reasoning and conclusions. Get Diego back!

  • AS

    Aleh S.

    31 10 2018 13:46

    1       0

    thanks! gone to buy some VIX calls

  • WB

    William B.

    31 10 2018 04:35

    1       0

    Fantastic. Period.

  • JL

    Johnny L.

    30 10 2018 19:18

    1       0

    excellent presentation with keen observations about volatility and a nice reminder at the end of what the likely future is for markets.

  • my

    markettaker y.

    29 10 2018 01:19

    0       0

    Anyone got an idea what his exact strategy sounds like? He's buying cheap gld calls? Spx call spreads? Not clear just what he's up to.

  • GF

    Gordon F.

    27 10 2018 01:53

    27       1

    Excellent interview. Just one complaint, for which I feel like a broken record. RV PLEASE voice over the questions. I prefer to listen to these interviews, as the video is just a talking head, but only flashing the questions on the screen makes that difficult. If we could hear the questions, the flow of the presentation would be greatly enhanced!

  • MG

    Mike G.

    27 10 2018 00:12

    2       0

    Fantastic! Thank you Diego!

  • PG

    Philippe G.

    26 10 2018 23:53

    1       0

    Interesting angle to describe current state.

  • HS

    Hisham S.

    26 10 2018 23:34

    2       0

    Fantastic. Thank you Diego.

  • tW

    tgwtom W.

    26 10 2018 21:33

    2       0

    Bubbling brilliance.

  • MR

    Mathew R.

    26 10 2018 16:55

    2       0

    Quite liked this video. Good job

  • BF

    Bill F.

    26 10 2018 15:06

    9       0

    the single best description of the macro economic/financial environment that i have seen.

  • TS

    Theodore S.

    25 10 2018 21:40

    2       0

    As a fellow alumnus of the Colorado School of MInes, I know the rigor behind your thinking and analysis. Looking forward to reading your book on anti bubbles! Also listening to your colleague, Daniel Lacalle on Macro Vision.

  • AB

    AJ B.

    25 10 2018 17:55

    13       0

    My scrambled thoughts put into a well structured presentation. Well done

  • PC

    Peter C.

    25 10 2018 12:46

    4       0

    Great overview of our big picture & practical too

  • NI

    Nate I.

    25 10 2018 04:56

    2       0

    Thanks Diego. I enjoyed your presentation. Do you worry about counter party risk? Especially if the markets had a 1987 type event. I think about insurance companies and how often mommies and daddies (in the form of re-insurance and taxpayers) are forced to run to the rescue and bailout the insurer when the cat 5 hurricane actually hits. Could the put writers cover them vis-a-vis a major market dislocation? Kinda thinking a good old fashioned long-short book is maybe a better way despite the availability of cheap insurance (that I worry might not be able to pay when it's needed most).

  • PD

    Pat D.

    25 10 2018 02:43

    4       0

    Simple, eloquent, ..... superb!!

  • ZW

    Zachary W.

    25 10 2018 02:22

    0       10

    Last I checked Romeo and Juliet is play not a movie... :)

    Great interview.

  • FC

    Fractal C.

    25 10 2018 00:44

    7       0

    Good presentation. His framework is very similar to Mark Spitznagel (Universa). BTW, Mark should definitely be a guest on RVTV

  • CA

    Christopher A.

    25 10 2018 00:21

    0       0

    Does anyone know what watch Diego is wearing in this interview?

  • RA

    Robert A.

    24 10 2018 22:55

    8       0

    Have enjoyed every Diego RV presentation! Great synopsis of where we are (I bet even his Mother understands). Japan, of course, seems to be the Canary and the one to watch—Japan does have some well known shock absorbers in that they are an insular Country with significant cultural, linguistic and behavioral homogenous attributes. Better hope the Robotics arrive in time to feed and clean them due to their demographic deficit though. Some Gold, some Volatility tail risk insurance and a heavier weighting of cash seems to be the “participation fee” for staying @ the Party.

  • SP

    Steve P.

    24 10 2018 22:47

    14       0

    Probably one of RV's best overall presentations on the current global financial systems' woes. His analogies used to explain in simply terms, the very complex interactions between investors, monetary authorities and markets are superb.
    Diego is just one of a growing number of top money managers warning us that major social and monetary system change is not far off.
    At least we are receiving plenty of warning via RV. The sub is worth every cent!!

  • JS

    Joseph S.

    24 10 2018 22:32

    4       0

    WOW !!! I want that book.

  • TJ

    Terry J.

    24 10 2018 21:20

    2       0

    Diego has an extraordinarily charming style of presenting his case and even more importantly some very persuasive arguments on bubbles and anti bubbles. With Wall Street stocks looking decidedly wobbly once more, a very timely video to help focus what Mr. Market may do next.

  • JF

    Joanne F.

    24 10 2018 20:35

    6       0

    Very clear. Too bad this knowledge isn't even more wide spread!

  • CL

    Charles L.

    24 10 2018 20:30

    5       0

    Hola Diego. The climbing comparison is fantastic. Are there any non-sophisticated instruments to use as that "market insurance" you state which would be accessible to a non-expert individual investor? I have no clue about derivatives but I am myself investing in uranium related equities and would be very much interested in hedging those specific positions in that manner given the intrinsic volatility this sort of asset usually has. I'm guessing for this asset insurance would not be so cheap but might be worth looking into.

    P.S: la manera de explicar toda la dinámica (opinión que comparto) es cojonuda. Enhorabuena!

  • DB

    David B.

    24 10 2018 20:03

    10       0

    Wow - really awesome presentation. Loved the concepts and investment thesis. Thank you, RV!

  • rr

    rlw r.

    24 10 2018 16:43

    9       0

    Thanks Diego, excellent analysis of the big picture provided through the system(s) thought processes of an engineer.
    The examples and imagery add great color and make the discussion quite enjoyable.

  • JH

    Jesse H.

    24 10 2018 15:12

    17       0

    I loved this analysis — absolutely fantastic. Please have Diego on again soon. His ideas and approaches really merit a deeper dive, I believe.

  • DS

    David S.

    24 10 2018 14:43

    11       2

    Excellent use of thoughtful metaphors and examples to explain the current situation vis-a-vis Mr. Soros' groundbreaking book. The point of view is solid and helps us to keep thinking about what kind of bubble are we in now. I loved the use of "anti-bubble" for symmetry. Good luck on your book and investing. DLS

  • JB

    Joe B.

    24 10 2018 14:33

    15       0

    What a brilliant way to describe a complex issue and to summarize what appears to me to be a great book. What I’d love to learn is how - as a retail investor - I can invest in volatility and other insurance products?

  • MS

    Marcio S.

    24 10 2018 13:31

    7       0

    Congrats on the interview.
    Diego, timing is everything in life for the precise point of reversion of a trend, nevertheless there is no time for insurance! I couldn't agree more with the idea of market complacency and "belief bubble". Insurances should be on portfolios and true diversification...

  • PD

    Peter D.

    24 10 2018 13:05

    16       0

    This guy (whom I have never heard of before) is a great communicator. He explains the bear dilemma - how to invest in a world of bubbles - perfectly. His "anti-bubble" thesis is a bit gimmicky ...but it's effective. I'd be interested to know how his book is doing and how his funds are performing. In any case, the video is worth watching twice.

  • PH

    Paul H.

    24 10 2018 12:18

    10       0

    Such a great overview of the largest bubble in modern financial history.

  • JS

    John S.

    24 10 2018 11:10

    27       1

    Very well articulated ...really enjoyed this interview