How to Invest When Nothing Makes Sense

Key Takeaways

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  The US-led global economic order is disintegrating - The post-WWII framework is ending without a viable replacement, leading to a period of unprecedented systemic uncertainty and potential instability.

  “After the Second World War, we put together an economic order centered around the US and the US dollar, and that's coming apart.”

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  Market resilience is breeding dangerous complacency - Equity risk premiums currently reflect mid-2000s levels of stability, failing to account for catastrophic geopolitical risks that are being ignored by investors.

  “The potential for catastrophic changes is much greater now than perhaps at any time in the last 70 years... and the market seems to essentially be blowing by, saying, it doesn't matter.”

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  The shift away from dollar dominance lacks a roadmap - Because no immediate alternative exists to replace the US dollar, the inevitable transition to a new currency order will be characterized by significant economic friction.

  “How do you go from the US dollar as the central currency to something else? Because there's nothing else out there right now that can replace the US dollar as a global currency.”

Episode Description

Subscribe to the Prof G Markets Youtube Channel  Scott Galloway and Ed Elson break down the biggest unanswered questions in the stock market, from Iran and AI to risks in private credit, and what they mean for investors. They then dive into the SpaceX IPO, with Scott offering his prediction for where the stock could land by year-end. Finally, they unpack what went wrong at Nike and Allbirds, and what Nike needs to do to turn its business around. Subscribe to the Prof G Markets newsletter  Order "Notes on Being a Man," out now Note: We may earn revenue from some of the links we provide. Follow the podcast across socials @profgmarkets Follow Scott on Instagram Follow Ed on Instagram, X and Substack Send us your questions or comments by emailing Markets@profgmedia.com Learn more about your ad choices. Visit podcastchoices.com/adchoices