Jordi Visser: Unprecedented market volatility is here, AI is reshaping economic structures, and the economy has split since 2022

Key takeaways

• We are entering a period of unprecedented market volatility, requiring investors to be prepared for significant fluctuations.
• The current economic structure is not designed to accommodate the rapid advancements in AI technology.
• Since 2022, the economy has been split into two parts, heavily influenced by rate hikes and asset market failures.
• AI is a major driver of the current stock market performance, significantly impacting market dynamics.
• Recent negative job reports are attributed to temporary factors such as strikes and adverse weather conditions.
• AI is causing job disruptions and increasing bankruptcies, leading to further job losses.
• Rising gas prices are expected to drive inflation back to concerning levels reminiscent of 2022.
• Geopolitical strategies are increasingly focused on controlling rare earth elements and oil resources.
• AI is predicted to become a central issue in the upcoming presidential cycle, influencing political discourse.
• Investors need to understand the implications of AI on economic structures and market behaviors.
• The intersection of technology and politics is expected to shift future discussions and election focuses.
• The economic landscape is evolving rapidly, with AI playing a pivotal role in shaping future trends.

Guest intro

Jordi Visser heads AI Macro Nexus Research for 22V Research. He previously founded and led Visser-Labs as Chief Strategist, advising asset managers on AI and digital assets disruption, and served as President and CIO of Weiss Multi-Strategy Advisers for two decades. With over 30 years as a veteran macro investor, he authors the VisserLabs Substack.

The beginning of unprecedented market volatility

• We are at the beginning of an incredibly volatile period with no historical precedent.

  — Jordi Visser

• Investors should brace for significant market fluctuations without historical parallels.
• Understanding the economic climate is crucial for navigating future market behaviors.

• I think people have to be prepared that we’re at the beginning of what is gonna be an incredibly volatile period that has no historical precedent.

  — Jordi Visser

• The prediction of volatility highlights the need for strategic investment planning.
• Economic indicators and technological advancements are key factors in future market behavior.
• Jordi Visser emphasizes the importance of being prepared for unprecedented market conditions.
• This insight is crucial for investors looking to adapt to rapidly changing economic environments.

The mismatch between economic structures and AI advancements

• The capital structure of this economy is built for slow growth, not for the fast pace of AI advancements.

  — Jordi Visser

• Current economic structures are not equipped to handle rapid AI-driven changes.

• Elon’s telling you fast and powerful that’s what ai is and so the capital structure is not built for that the capital structure of this economy is built for slow.

  — Jordi Visser

• AI’s influence on economic structures requires a reevaluation of investment strategies.
• The rapid pace of AI advancements poses challenges to traditional economic frameworks.
• Understanding AI’s impact on economic structures is vital for future investment decisions.
• This claim highlights the need for economic adaptation to technological progress.
• Investors must consider the implications of AI on economic growth and capital structures.

The economic divide post-2022

• The economy has been divided into two parts since 2022, with significant impacts from rate hikes and failures in various asset markets.

  — Jordi Visser

• Rate hikes and asset market failures have created a bifurcated economic landscape.
• Understanding the effects of interest rate hikes on asset classes is crucial for investors.

• The economy… has had two parts now for really since 2022 once we raised rates significantly and the housing market died and then we had silicon valley bank the commercial real estate market died…

  — Jordi Visser

• The economic divide reflects external financial pressures and their impact on markets.
• This analysis provides insight into the current economic conditions and challenges.
• Investors must navigate a complex economic environment shaped by recent financial events.
• The bifurcation of the economy underscores the need for strategic financial planning.

AI’s role in driving stock market performance

• The rise of artificial intelligence is a primary driver of the current stock market performance.

  — Jordi Visser

• AI’s emergence significantly influences market dynamics and stock performance.

• The problem with the economy and what’s driving it now it’s all ai… if it wasn’t for artificial intelligence I doubt the stock market would be at the level it is…

  — Jordi Visser

• Understanding AI’s impact on market performance is crucial for investors.
• AI’s influence on the stock market highlights its significance in current economic conditions.
• This insight connects technological advancements to market trends and behaviors.
• Investors must consider AI’s role in shaping future market performance and strategies.
• The relationship between AI and market dynamics is a key factor in investment decisions.

Factors influencing the recent negative jobs report

• The recent jobs report was negative primarily due to one-off factors like strikes and bad weather.

  — Jordi Visser

• Temporary factors such as strikes and weather conditions influenced the jobs report.

• The reason that we’re in negative territory is because health care was negative this month… there were some strikes and some other issues that were one off and remember you had bad weather.

  — Jordi Visser

• Understanding the factors behind the jobs report is important for economic policy analysis.
• This claim provides context for interpreting current labor market trends and data.
• Investors need to consider temporary influences on employment data in their analyses.
• The jobs report reflects broader economic conditions and their impact on employment.
• Analyzing the jobs report requires knowledge of specific factors affecting employment trends.

AI’s impact on jobs and business stability

• AI is disrupting jobs and leading to increased bankruptcies, which will result in job losses.

  — Jordi Visser

• AI’s disruption of jobs is contributing to business instability and bankruptcies.

• AI is definitely killing businesses and bankruptcies… we’re seeing more bankruptcies and i think we’re gonna see more of them which means there’s job losses.

  — Jordi Visser

• Understanding AI’s impact on employment and business stability is crucial for economic analysis.
• This statement highlights the negative effects of AI on job markets and business environments.
• Investors must consider the implications of AI-driven disruptions on employment and businesses.
• The rise of AI presents challenges to job stability and economic growth.
• Analyzing AI’s impact on jobs is essential for understanding future economic conditions.

Inflation concerns due to rising gas prices

• Inflation is expected to rise significantly due to increasing gas prices.

  — Jordi Visser

• Rising gas prices are anticipated to drive inflation back to concerning levels.

• You’re gonna see an inflation number that I’m sure based on what we’ve seen a gas at the pump is gonna be at 1% or higher… we’re gonna be back in kind of the oh my god we’re in 2022 period again.

  — Jordi Visser

• Understanding the correlation between gas prices and inflation is critical for economic analysis.
• This forecast indicates potential economic challenges related to inflation trends.
• Investors need to monitor gas prices and their impact on inflation metrics.
• Rising inflation poses risks to economic stability and financial planning.
• Analyzing inflation trends requires knowledge of factors influencing price levels.

Geopolitical strategies and resource control

• The intersection of rare earth control and oil resources is crucial in geopolitical strategies.

  — Jordi Visser

• Resource control plays a significant role in international relations and geopolitical strategies.

• When you go into the china iran russia proxy and you get into the hey we control rare earth alright let’s make sure with greenland which has a lot of rare earth that we have at least the possibility when we do a deal with the ukraine let’s make sure rare earth is involved in terms of china.

  — Jordi Visser

• Understanding the geopolitical significance of rare earth elements is crucial for global power dynamics.
• This insight connects resource control to broader geopolitical strategies and international relations.
• Investors must consider the implications of resource control on global markets and politics.
• Geopolitical strategies are increasingly focused on securing access to critical resources.
• Analyzing geopolitical dynamics requires knowledge of resource control and its impact on global relations.

AI’s influence on the upcoming presidential cycle

• Artificial intelligence will become a central topic in the upcoming presidential cycle.

  — Jordi Visser

• AI is predicted to play a significant role in shaping future political discourse and elections.

• I think it’s absolutely gonna be there because in three years we will be talking more about humanoids…

  — Jordi Visser

• Understanding the intersection of technology and politics is crucial for future discussions.
• This insight highlights the potential impact of AI on political strategies and election focuses.
• Investors need to consider the role of technology in shaping political landscapes and policies.
• The upcoming presidential cycle is expected to focus on AI and its implications for society.
• Analyzing political trends requires knowledge of technological advancements and their influence on politics.