Hey everyone, today's episode of Full Signal is with Steve Howe. He is a quant researcher at Bloomberg,

one of the smartest people I know in finance. In this conversation, we talk about the case-shaped

economy, AI's impact on the macro outlook and the labor market, what AI means for everybody's jobs,

and then ultimately how all of this affects your portfolio,

how to buy it, how to trade it, what you should do as an investor.

This is a fantastic conversation.

I learned a ton from Steve, and this is a must watch episode.

Steve, it's great to have you here.

And I want to get right into your macro overview because I know you do a lot of research on inflation, debt, and how all of that impacts sort of the investing landscape.

Yeah, absolutely. Thank you very much for having me. And this debt has been sort of close to my heart. It was what I worked on during my PhD dissertation, thinking about the economic nature of debt

as an instrument.

Obviously, today, that's all the talk, right?

And in particular, I was looking at the economic nature of government bond in relation to

other assets.

At the time, I was curious to how,

you know, the Federal Reserve, which was considering unwinding's then much smaller balance sheet,

you know, how that would impact bond yields and also structurally sort of the structure,

the U.S. government debt, how you would finance itself.

So what it came down to was realizing that bonds actually have had an evolving economy nature

when the stock bond correlation, which is a proxy for the, you know, when bonds have a negative

correlation with stock returns, bonds actually are hedging asset.

They are sought after.

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