Michael Drury on China's Trillion Dollar Secret and Why The U.S. Is Not Headed Imminently Into A Recession

This week we discuss the latest NFP report, the Treasury's Quarterly Refunding Announcement, and whether the Trump trade is unwinding. We also delve into the moves in yields, MicroStrategy, and much more. Enjoy! — Follow Quinn: https://x.com/qthomp Follow Tyler: https://twitter.com/Tyler_Neville_ Follow Felix: https://twitter.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance -- Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Forward Guidance Telegram: https://t.co/G7Ljv4x5Dp Follow Blockworks: https://twitter.com/Blockworks_ — Weekly Roundup Charts: https://drive.google.com/file/d/1Z6tgjtMhnVnGc9PLqwxAMd3TB2Gmx0Qu/view?usp=sharing — Ledger, the world leader in digital asset security for consumers and enterprises, proudly sponsors Forward Guidance, where traditional finance meets crypto. As Ledger celebrates a decade of securing 20% of the world’s crypto assets, it offers a secure gateway for those entering digital finance. Buy a LEDGER™ device today and protect your assets with top-tier security technology. Buy now on Ledger.com. — Timestamps: (00:00) Introduction (01:47) NFP Report Takeaways (14:50) Quant Corner (24:31) Ledger Ad (25:16) Is The Trump Trade Unwinding? (37:31) QRA (48:16) Microstrategy: The Big Long — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this episode, Jurrien Timmer joins the show to discuss where we are in the current bull market, the push & pull between earnings and valuations, and the various influences on interest rates. We also delve into when the US debt level becomes a real problem, monetary hedges, and much more. Enjoy! __ Follow Jurrien: https://x.com/TimmerFidelity Follow Felix: https://x.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ __ Ledger, the world leader in digital asset security for consumers and enterprises, proudly sponsors Forward Guidance, where traditional finance meets crypto. As Ledger celebrates a decade of securing 20% of the world’s crypto assets, it offers a secure gateway for those entering digital finance. Buy a LEDGER™ device today and protect your assets with top-tier security technology. Buy now on Ledger.com. — Timestamps: (00:00) Introduction (01:14) Where Are We in the Bull Market? (04:22) Is this Bull Market Unique? (07:07) Economic Resilience to Short Rates (09:12) Quantitative Tightening & Liquidity (12:39) Election Impact on Markets (15:54) Unpacking the Move in Yields (22:20) Outlook for Risk Assets (26:39) Earnings vs Valuation (34:52) Ledger Ad (35:37) Did We Achieve A Soft Landing? (37:32) Inflation Reacceleration Risk (42:02) Gold, Bitcoin & Monetary Hedges (45:40) Path To Negative Real Rates (49:07) When Does The US Level Debt Actually Matter? (56:42) Learn More About Jurrien __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

This week we discuss the short bond trade, volatility and excessive hedging, and the election probabilities. We also delve into MicroStrategy’s Bitcoin strategy, unrealized bond loss FUD, and much more. Enjoy! — Follow Quinn: https://x.com/qthomp Follow Tyler: https://twitter.com/Tyler_Neville_ Follow Felix: https://twitter.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Weekly Roundup Charts: https://drive.google.com/file/d/1S9PUsLK1G_mqZxzYWrQ1tbEsrgTlecF7/view?usp=drive_link — Ledger, the world leader in digital asset security for consumers and enterprises, proudly sponsors Forward Guidance, where traditional finance meets crypto. As Ledger celebrates a decade of securing 20% of the world’s crypto assets, it offers a secure gateway for those entering digital finance. Buy a LEDGER™ device today and protect your assets with top-tier security technology. Buy now on Ledger.com. — Timestamps: (00:00) Introduction (02:33) Path of Interest Rates (08:01) Is the Short Long Bond Trade Overdone? (10:46) Overdone Currency Moves (12:53) Implied Volatility vs Realized Volatility (16:48) The MOVE Index & Election Hedging (20:29) Election Probability Distribution (27:17) Ledger Ad (28:02) Yellen & Real Interest Rates (31:10) Inflation Resurgence (33:18) Global Coordination (36:01) Macro Trading vs Ideas & the Bond Trade (39:04) The Reality of a Trump Presidency (47:04) Bitcoin & MicroStrategy (52:19) Tesla & The Convert Market (55:56) Unrealized Bond Losses FUD — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this episode, Eric Basmajian joins the show to break down the business cycle, how the cyclical economy impacts the broader economy, and the housing sector’s role in the business cycle. We also delve into the strong GDP numbers, how to measure the labor market and interpret revisions, and much more. Enjoy! __ Follow Eric Basmajian: https://x.com/epbresearch?lang=en Follow Eric’s Substack: https://epbresearch.substack.com/ Follow Felix: https://x.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Timestamps: (00:00) Introduction (00:34) Breaking Down the Business Cycle (09:24) Is this Cycle Different? (12:24) Durable Goods Manufacturing & Motor Vehicles (18:20) The Cyclical Economy (21:52) The Housing Sector (26:17) Reconciling Strong GDP with Cyclical Slowing (30:44) Measuring the Labor Market (34:41) Digging Into Jobless Claims (39:35) Impact of Gig Economy on Jobless Claims (42:02) Non-Farm Payrolls & Revisions (47:12) The Unemployment Rate (50:33) The Neutral Rate & Yield Curve (57:46) Will Fed Cuts Reignite Inflation? (01:01:32) Learn More About Eric's Work __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

This week we discuss election trades and Trump’s impact on markets, the number of Fed rate cuts currently priced in, and the ongoing bull market in gold. We also delve into the outlook for Bitcoin, how to measure a hard or soft landing, and much more. Enjoy! — Follow Quinn: https://x.com/qthomp Follow Tyler: https://twitter.com/Tyler_Neville_ Follow Felix: https://twitter.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Weekly Roundup Charts: https://drive.google.com/file/d/1_VTM8KHaUHEG4hawqaDJNMF8TddDRM-t/view?usp=drive_link — Timestamps: (00:00) Introduction (01:42) Economy is Doing Well (05:09) Earnings vs Economic Data (08:29) Actionable Market Ideas (11:38) Election & Trump Trades (18:46) Small Caps & Gold (21:34) Bitcoin & Microstrategy (24:45) Contrarian Gold Take (27:52) Trump Trade Hedges (29:19) Fed Rate Cutting Path (33:07) Economic Growth Under Trump (38:12) Volatility & Election Hedging (41:50) Measuring Hard & Soft Landings (45:52) Economy Under Biden/Harris (49:45) AI & The Future Economy — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this episode, Tony Greer joins the show to discuss his perspective on equities, the subsectors he’s trading, and his outlook on commodities. We also delve into the Trump trades, the metals market, and much more. Enjoy! __ Follow Tony Greer: https://x.com/TgMacro Follow Felix: https://x.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Timestamps: (00:00) Introduction (00:40) Perspective on Equities, Rates, & Commodities (06:38) Win-Win for Equities (09:59) Election & Trump Trades (13:48) A Trader's Market (17:07) Fed & Macro (20:09) Bond Yields & Volatility (22:56) Market Sentiment Push & Pull (25:09) Oil & Geopolitics (30:31) Gold Market (35:29) Precious & Base Metals (37:57) FX Market (39:04) Bitcoin & Crypto (41:28) What Would Make Tony Bearish? (43:03) Tony's Work __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

This week we sat down at Permissionless to discuss the latest CPI and labor market data, the likely noise in the upcoming labor data, and the impact of coordinated central banking. We also delve into the election, its potential impact on crypto, and much more. Enjoy! — Follow Mike: https://x.com/MikeIppolito_ Follow Quinn: https://x.com/qthomp Follow Felix: https://twitter.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Timestamps: (00:00) Introduction (01:26) Inflation & Labor Market Data (06:03) Inflation Mechanics (10:13) Labor Market Noise (14:13) Coordinated Central Banking (19:26) Bifurcated Economy (23:45) Is Macro Bullish or Bearish? (30:11) Crypto & the Election (36:18) Bitcoin Outlook & Final Thoughts — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this episode, Jonah and Avi join Felix to discuss the current macro regime, Bitcoin and the crypto market, and the impact of forward guidance. They also delve into the ongoing uncertainty throughout markets, the Fed risking its credibility, and the economic bifurcation playing into crypto. — Follow Jonah: https://x.com/jvb_xyz Follow Avi: https://x.com/AviFelman Follow Felix: https://twitter.com/fejau_inc Follow 1000x: https://x.com/1000xPod Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Timestamps: (00:00) Introduction (02:20) Oil Market & Geopolitics (05:39) Macro's Role In Crypto Markets (08:41) Fundamental View of Bitcoin & Crypto (14:00) Bitcoin & Interest Rates (21:18) The Forward Guidance Regime (25:00) Economic Growth vs Stimulus (27:57) Regulatory Uncertainty Slowing Crypto (30:49) Economic Uncertainty (33:57) Unaffordability & Wealth Disparity (36:37) The Fed's Credibility (40:19) Economic Bifurcation (45:10) History of Asset Bubbles (46:48) Generational Wealth (51:02) Price Predictions — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

This week we discuss the latest bullish jobs report, the impact of globally-coordinated easing, and the Middle East's impact on markets. We also delve into the recent SOFR explosion, election pricing in markets, and much more. Enjoy! — Follow Quinn: https://x.com/qthomp Follow Tyler: https://twitter.com/Tyler_Neville_ Follow Felix: https://twitter.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Forward Guidance Newsletter: https://blockworks.co/newsletter/forwardguidance Follow Blockworks: https://twitter.com/Blockworks_ — Weekly Roundup Charts: https://drive.google.com/file/d/1S24tXpteiZg1jilfU8aXk0L_NtXFLXVg/view?usp=drive_link — Join us at Permissionless III Oct 9-11. Use code: JAUVIN30 for a 30% discount: https://blockworks.co/event/permissionless-iii — Timestamps: (00:00) Introduction (02:34) Non-Farm Payrolls (10:59) Fixed Income & High Yield (12:43) Global Coordinated Easing Cycle (16:20) US Dollar & US Exceptionalism (18:52) Global Easing Driving Growth & Liquidity (22:08) The Big Picture (26:32) Permissionless Ad (27:11) Oil, Gold, & the Middle East (31:37) Global Collateral Shift (33:19) Middle East Tail Risk (36:23) SOFR Explosion & QT (42:09) Simplifying Macro Trading (45:25) Economic Politics (48:28) Crypto Markets (50:31) Election Pricing in Markets (55:56) Permissionless Next Week — Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this episode, Harley Bassman joins the show to discuss what the bond market is pricing, the Fed’s master plan, and if we can see a second wave of inflation. We also delve into the MBS market, the impact of immigration on the labor market, credit spreads, and much more. Enjoy! __ Follow Harley Bassman: https://x.com/ConvexityMaven Check out Harley’s website: https://www.convexitymaven.com Follow Felix: https://x.com/fejau_inc Follow Forward Guidance: https://twitter.com/ForwardGuidance Follow Blockworks: https://twitter.com/Blockworks_ __ Join us at Permissionless III Oct 9-11. Use code: JAUVIN30 for a 30% discount: https://blockworks.co/event/permissionless-iii — Timestamps: 00:00 Introduction 00:54 Implied Forward Rates 03:46 Bond Market Pricing A Recession 07:08 Yield Curve Control & Forward Guidance 11:22 Fair Value of Long Yields 13:54 Duration, Credit, & Convexity 18:11 MBS Spread vs IG Spread 23:21 The Real Risk-Free Rate 26:11 The Fed's Master Plan 29:43 Permissionless Ad 30:22 Can We See a Second Wave of Inflation? 35:19 Labor Market & Immigration 38:10 Are Credit Spreads Fairly Priced? 40:35 Small Caps & Floating-Rate Debt 42:03 Market Opportunities 44:33 Equities & Rates 47:59 Learn More About Harley's Work __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets