Monetary Matters with Jack Farley

Sean McGould, CEO and CIO of $19 billion hedge fund manager The Lighthouse Group, joins OPM to discuss navigating today's bull market by targeting diverse sources of global alpha. The conversation focuses on Japan as a new source of alpha, spurred by the country's historic corporate governance reforms, the unwinding of cross-shareholdings, and the new NISA guidelines driving unprecedented retail investment. Additionally, McGould breaks down how the AI capital expenditure arms race is shaping global equity issuance and explains why the multi-manager "pod shop" model is the true modern successor to Wall Street's legacy proprietary trading desks.

Follow Max on X: https://x.com/maxwiethe

Follow Other People’s Money on:



Apple Podcast https://bit.ly/4e7QJ1M

Spotify https://bit.ly/3Yhaazi

YouTube https://bit.ly/3C63VXR

X https://x.com/opmpod

Timestamps:

00:00 Japan Market Shift

01:29 Lighthouse Group

04:53 Why Hedge in Bull Runs?

10:43 Equity Issuance Signals

13:33 Capex Versus Meme Raises

16:27 AI Inside Lighthouse

18:20 Specialists vs. Generalists

19:42 AI Fuels Asia Outperformance

21:18 Japan Reforms and Nikkei

24:43 Korea Value Up Program

27:44 Fixing Incentive Imbalances

32:34 Sector Pair Trades Explained

33:56 Factor Neutrality Pitfalls

34:44 AI and Narrative Factors

41:54 Why Liquidity Means Capacity

44:34 Hidden Alpha in Regulation

50:30 Hedging Regulatory Unknowns

53:50 Peak Pod Shop Debate

57:40 Diversification and Market Liquidity

Learn more about the Fundrise Income Fund here:

https://Fundrise.com/mm

It's no secret that the new Fed chair, Kevin Warsh, prefers the Federal Reserve to have a smaller balance sheet, perhaps a much, much smaller balance sheet. The consequences of this range from the mundane to the profound, but what is without question is that in order to reduce the Fed's balance sheet, there need to be additional tools to reduce reserve demand from the banking system. 

Stanford Professor Darrell Duffie returns to Monetary Matters to explain that to safely reduce Fed assets, policymakers must first address the liability side of the ledger by drastically lowering commercial banks' high demand for reserve balances. If the Fed simply sells off assets without adjusting this structural demand, it risks losing control of interest rates and sparking extreme volatility in repo funding markets, similar to the disruptions witnessed in September 2019. To prevent such a liquidity crisis, Duffie outlines four crucial policy tools from his latest research: utilizing temporary open market operations, easing stringent liquidity regulations, implementing software-driven liquidity savings mechanisms, and tiering the interest rates paid on excess reserves. While some of these proposed banking plumbing changes are already successfully utilized by other global central banks, their adoption remains highly debated within the Federal Reserve. Ultimately, integrating these innovative monetary tools could provide the necessary framework for the Fed to achieve a vastly smaller footprint in the financial markets over the coming decade. Recorded June 30, 2026. 

Darrell Duffie website: https://www.darrellduffie.com/

Pieces discussed: 

“The Payment System Puts a Floor on the Fed’s Balance Sheet,” Spring 2026:

https://www.darrellduffie.com/uploads/1/4/8/0/148007615/duffie_bpea_payments.pdf

“An Efficient Liquidity Savings Mechanism,” June 3, 2026: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6869662&__cf_chl_f_tk=0_Jrq4.M1jw0cY9jkTQugQHw531LRaR5X__LMj_0U.Q-1783272074-1.0.1.1-6nR7OVxYRqdVjoMHJTtUJ6A5vRg.ls3f_TfIWkVJqoo

Follow Jack Farley on X https://x.com/JackFarley96

Follow Fundrise on X https://x.com/fundrise?lang=en

Follow Monetary Matters on:

Apple Podcast https://rb.gy/s5qfyh

Spotify https://rb.gy/x56dx5

YouTube https://rb.gy/dpwxez

Learn more about the Fundrise Income Fund here:

https://Fundrise.com/mm

In this episode of Monetary Matters, host Jack sits down with Josh Pristaw, President of the $73 Billion real estate firm Clarion Partners, to decode the smartest institutional property plays for the new 2026 market cycle. Pristau incisively breaks down why Clarion avoids the massive concentration risks of direct data center development, opting instead to capitalize on the AI and e-commerce boom through their $42 billion industrial and logistics portfolio. He reveals senior housing as the firm's highest conviction asset class, driven by an undeniable demographic tsunami where 10,000 Americans turn 80 daily, demanding a quintupling of current supply pipelines. Listeners will also gain deep insights into the multifamily rental market's recovery, which is currently being fueled by peak household formation demographics and stabilizing lease trade-outs. Conversely, Pristau outlines a starkly bearish case for non-trophy office spaces, citing massive tenant replacement costs and functionally obsolete designs. Whether you are navigating commercial real estate investing, private credit ripples, or core-plus fund strategies, this interview delivers a masterclass on finding high-yield stability in a shifting macroeconomic landscape.

Follow Jack Farley on X https://x.com/JackFarley96

Follow Fundrise on X https://x.com/fundrise?lang=en

Pieces discussed:

“A Golden Opportunity for Senior Housing”: https://www.clarionpartners.com/insights/senior-housing-opportunity

“U.S. Core Real Estate: A New Cycle is Emerging”: https://www.clarionpartners.com/insights/us-core-real-estate-a-new-cycle

“Building into the Future: The Case for U.S. Industrial Development”: https://www.clarionpartners.com/insights/us-industrial-development

Follow Monetary Matters on:

Apple Podcast https://rb.gy/s5qfyh

Spotify https://rb.gy/x56dx5

YouTube https://rb.gy/dpwxez

In this episode, veteran investor and macro strategist Erik from the Erik YWR Substack breaks down his bold bull thesis projecting the S&P 500 to hit 10,000 by the end of 2027. Drawing on his past investing experience in Africa, Erik introduces "Project Zimbabwe," explaining why higher inflationary eras trigger an "upward crash" where nominal assets like stocks and real estate surge even when the broader economy feels sluggish. He challenges today’s market bears by comparing the current AI and semiconductor boom to the 1999 dot-com era, arguing that accelerating earnings growth and revolutionary technology could justify significantly higher market multiples.  Beyond the tech trade, Erik highlights massive opportunities in European and Japanese banks transitioning back to a "risk-on" posture, alongside financial exchanges like CME and ICE that stand to thrive on rising market speculation. He also candidly addresses his toughest underperforming trades in Hong Kong and Chinese tech, differentiating between mainland China's robust hardware plays and Hong Kong's heavily disrupted e-commerce software sector. Ultimately, Erik warns that the greatest long-term risk for investors isn't a temporary 20% market correction, but the wealth erosion of sitting on the sidelines while the cost of living skyrockets around them. Recorded June 29, 2026.

Follow Erik YWR on X https://x.com/erik_ywr?lang=en

Follow Jack Farley on X https://x.com/jackfarley96

Erik YWR’s Substack https://www.ywr.world/

Pieces Discussed In Interview:

“YWR: S&P $10,000 Update,” June 16, 2026:https://www.ywr.world/p/ywr-s-and-p-10000-update

“YWR: Global Factor Model,” June 27, 2026: https://www.ywr.world/p/ywr-global-factor-model-9b9

“YWR: Friday Money Maker(s),” June 19, 2026 (on ICE CME and Exchanges): 

https://www.ywr.world/p/ywr-friday-money-makers

 Follow Monetary Matters on:

Apple Podcasts https://rb.gy/s5qfyh

Spotify https://rb.gy/x56dx5

YouTube https://rb.gy/dpwxez

Leading IPO researcher Jay Ritter, widely known as "Mr. IPO" and the director of the IPO Initiative at the University of Florida's Warrington College of Business breaks down the historic 2026 public market landscape. Ritter analyzes the unprecedented potential for a wave of mega-IPOs from tech giants like SpaceX, OpenAI, and Anthropic. He dives into the realities of staggering price-to-sales ratios, warning that while AI offers immense technological promise, eye-watering trillion-dollar valuations leave very little room for error. Ritter also cuts through the hype surrounding retail access to venture capital and private equity, explaining why extra layers of middlemen, "volatility washing," and an evaporating illiquidity premium mean average investors aren't actually missing out on a free lunch.

Professor Ritter’s IPO Data: https://site.warrington.ufl.edu/ritter/ipo-data/

Follow Max on X: https://x.com/maxwiethe

Follow Other People’s Money on:



Apple Podcast https://bit.ly/4e7QJ1M

Spotify https://bit.ly/3Yhaazi

YouTube https://bit.ly/3C63VXR

X https://x.com/opmpod

Timestamps:

00:00 Intro

00:58 Meet Mr IPO

01:40 2026 is Unprecedented

02:52 Do IPOs Signal Tops

04:27 How IPO Pricing Works

05:57 SpaceX Valuation Risks

09:26 TAM Hype and Cursor

13:27 2026 Versus Past Waves

16:17 Must Own AI Exposure

19:46 Regulation and Unintended Effects

27:29 Geopolitics and Dual Use

29:10 Will IPO Volume Boom?

32:40 VC/PE = No Free Lunch

35:36 Retail Access Fee Stacking

39:14 Volatility Washing and Perps

49:09 Sentiment and Final Takeaways