They dive into the "knife edge" of the U.S. economy, currently perched precariously between inflation and deflation. They underline the critical role of fiscal stimulus, central bank actions, and forthcoming economic data in determining the direction of the economy.

They note global parallels in issues like housing affordability. They dig into how productivity improvements (potentially aided by AI) and how allowing real wages to rise could help restore economic equilibrium. However, hoping for a productivity miracle is unwise.

The conversation shifts to strategies for navigating inflation versus deflation scenarios. They discuss the advantage of active stock-picking over broad indexing due to expected differential impacts across sectors and companies. Lastly, they examine the less regulated private debt markets as an area warranting further research to identify risks and opportunities.

‍