IL05: The Road to Economic Stability ft. Andrew Smithers

Today, we are joined by Andrew Smithers, Author, Economist and Founder of Smithers & Co, to discuss how we can achieve economic stability, based on his book, “The Economics of the Stock Market”. We address the Q Ratio and why it is important for economic stability, how to use the idea of hindsight value to predict markets and how monetary policy has contributed to economic instability, the incentives for a company’s management and how to balance the level of leverage. Lastly, we discuss reasons why policy makers should be focusing on Q, what Andrew has planned for the future and much more.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Kevin on SubStack & read his Book.

Follow Andrew on Smithers & Co & read his book.

Episode TimeStamps:

00:00 - Intro

02:15 - Introduction to Andrew

03:28 - Key messages from his book

06:42 - How is the Q Ratio constructed?

14:34 - The idea of hindsight value

23:31 - How Quantitative Easing caused instability?

26:49 - How remuneration policies have led to an increased Q value

31:14 - The incentives for management

42:30 - Should policy makers focus more on...