This is Macro Voices with hedge fund manager Eric Townsend, the free weekly financial

podcast targeting professional finance, high net worth individuals, family offices, and

other sophisticated investors. Macro Voices is all about the brightest minds in the world

of finance and macroeconomics telling it like it is. Bullish your bearish, no holds

barred. Now here are your hosts, Eric Townsend and Patrick Sarasna.

Macro Voices Episode 175 was recorded on July 11, 2019. I'm Eric Townsend. This episode

of Macro Voices is brought to you by top traders onplod.com, the leading podcast when it

comes to systematic trading and investing. Former hedge fund manager Jesse Felder returns

as this week's feature interview guest. We'll discuss the stock market, bond yields,

golds breakout, and Jesse's concerns about surveillance, capitalism, and Facebook's

Libra Digital Currency. Be sure to stay tuned for our post-game segment after the feature

interview when we'll have extended equity market coverage with another of Patrick's

famous chart books. And I'm Patrick Sarasna. Now Eric, let's dive right into this S&P 500

making all-time new highs. What's going on? Well, you know, I have very low directional

conviction at this point, Patrick. We're seeing such clear evidence that what's in control

here is what I call the bad is the new good doctrine. The reason that the S&P ripped vertically

higher to new all-time highs on Wednesday morning was because the Federal Reserve chairman

said very clearly that the economic outlook is getting worse. And of course, the mechanism

is easy to understand here. People anticipate that a worsening economic outlook means

that there's going to be more accommodative monetary policy. And they know that this market

actually operates on liquidity, not economic fundamentals. If there's more injection of

stimulus, that money's got to go somewhere. It'll go into asset markets because that's

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