- Macro Monday
- Posts
- Macro Monday: Bitcoin Mania
Macro Monday: Bitcoin Mania
The Macro Institute's Weekly Economic Primer
The Macro Institute
April 01, 2024
Last week, we lost Daniel Kahneman, one of the giants in the field of Behavioral Economics. Kahneman won the Nobel Prize in 2002 for his work challenging the accepted assumption in the field of economics that human beings can be expected to behave rationally. While not an economist or investor by training (his PhD was in Psychology), he was hugely influential in the macro world. His work has informed the financial services business in any number of ways, including how wealth advisors treat their clients and how portfolio managers choose their investments. Even after his passing, we will certainly continue to see vivid examples of his work all around us. In fact, we see one in this week’s featured chart. The continued rally in Bitcoin and other cryptocurrencies, which offer neither a claim on a productive asset or anything resembling certainty of cash flow, seems to confirm that humans do not always behave rationally. Indeed, for us the reckoning that crypto investors face is not a matter of “if” but “when”. Of course, this entire enterprise seems to be a game of who can be the last one out the door before the lights turn off. Rest in Peace, Professor.
The Macro Week In Review
Macro Job Board
The Macro Risk Strategist will work closely with select macro portfolio managers and their teams to understand and analyze their portfolio and risk. They will also develop, maintain, and leverage models for option pricing in order to better quantify unique portfolio risks.
The Macro Research team focuses on the intersection between economics and financial markets across a wide class of assets including equities, rates, FX, credit, mortgages and commodities. We are seeking an experienced credit strategist to join the Credit Strategy Research team.
The successful candidate will play a crucial role in supporting our quantitative research and production efforts, utilizing their expertise in Python programming and quantitative analysis to contribute to the development and enhancement of our trading strategies.
Top Tweets From The Macro Institute
Macro is more important than company-specific analysis?
Macro has never been more crucial, but it is often perceived as unimportant for equity investing.
A slower growing economy has deemphasized company-specific events on stocks while magnifying the influence of macro forces.
— The Macro Institute (@MacroInstitute)
12:35 PM • Mar 26, 2024
I realize it's not until next week, but I am already thinking about the March payroll report. Employment always matters, but it is especially prescient after the end of a tightening cycle. Most leading indicators of employment point to weaker data in the second half of the year.
— Francois Trahan, M²SD (@FrancoisTrahan)
1:48 PM • Mar 25, 2024
Our final Macro Summit of Q1 2024 is underway in NYC!
We have some exciting announcements coming out in the near future. If you want to stay up-to-date on future opportunities to see @FrancoisTrahan, @bnick41, and the rest of the team, sign up below:
themacroinstitute.beehiiv.com/subscribe
— The Macro Institute (@MacroInstitute)
1:46 PM • Mar 27, 2024
Have feedback? Simply reply to this email to tell us what you like and don’t like about Macro Mondays!