During this week’s Cocktail Investing episode, Tematica’s Chris Versace interviews none other than Tematica’s Chief Macro Strategist, Lenore Hawkins, to discuss among other things how the global macro landscape fits into our thematic lens and why it is so important to investors and business folks alike.
During the conversation, Lenore reveals how she became fascinated with understanding the economy, as well as the why behind it. In sharing her biggest misstep with the economy, Lenore shares how listeners can benefit from those learnings as well as what tools she uses to not only stay on top of all the data, but how to put it into perspective. As Lenore explains, in today’s increasingly faster and faster world, taking the time to understand the underlying data, what it means and why it is happening makes all the difference when constructing view be it for the global economy or your investing portfolio.
Lenore also shares, where she thinks we are in the current business cycle, how to spot the start of the next one and which country she thinks will be the key driver of global GDP in the coming years. More than a few times, Lenore and Chris come back to how their two different perspectives overlap and how that gives rise to our various investment themes. You’ll also learn a few things about Lenore, including what is her favorite cocktail, as she’s faced with several of the now famous questions used by Inside the Actor’s Studio host James Lipton. Finally, as Lenore volunteered there are several books and authors listed below that she things are helpful when it comes to understanding the global macro landscape.
Economics is more art than science, and more a system of beliefs than objective laws. This is because we cannot, as we do in science, hold all else constant and change just one variable so that we understand the economic impact of something. Because of this, to understand the economy, one needs to understand what it is that the majority believes to be true. To understand that, one needs to understand the various theories out there. We cover that major schools of thought in a pretty succinct manner early on in our book, Cocktail Investing, but here is a selection of my (Lenore) favorites.
Books on the global macro economy:
- Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns (Of course we’d include this one!)
- The Leading Indicators: A Short History of Numbers That Rule Our World
- Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics
- The Causes of Economic Crisis
- Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing our World
- Antifragile: Things That Gain from Disorder
- Hidden in Plain Sight
- The Ascent of Money: A financial History of the World
- This Time Is Different: Eight Centuries of Financial Folly
- The Making of Modern Economics: The Lives and Ideas of the Great Thinkers
- Selected Essays on Political Economy (This one is seriously awesome despite the horrible name)
- History of Economic Theory
Resources for this podcast:
- Chris Versace –@_ChrisVersace
- Lenore Hawkins –@EllesEconomy
- TematicaResearch – https://www.tematicaresearch.com
- Themes Report:https://www.tematicaresearch.com/whatisthematicinvesting
Books we’re currently reading:
- Versace:100 Plus: How the Coming Age of Longevity Will Change Everything, From Careers and Relationships to Family and Faith
- Hawkins: Hidden in Plain Sight: The fundamental link between relativity and quantum mechanics