Andy Constan joins Monetary Matters to explain why he thinks financial markets are abnormal. With credit spreads extremely tight, the yield curve flat, and an expensive stock market, Andy estimates that all assets are expensive to cash and that financial markets are required to return to normal in order for inflation to return to normal. Recorded on November 26, 2024. Follow Monetary Matters on: Apple Podcast https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez Follow Andy Constan on Twitter https://x.com/dampedspring Follow Jack Farley on Twitter https://x.com/JackFarley96 Timestamps: 00:00 Intro 01:03 The Financial Markets Are Extremely Abnormal 04:11 Long-Term Bond Yields, Not Short-Term Interest Rates, Are What's Driving The Economy 10:51: The Yield Curve Is Still Abnormally Flat 12:34 Andy's Views On What "Normal" Is For Stocks And Bonds 19:49 A Return To Normal Doesn't Require A Steep Sell-Off In Equities 22:59 Correlation Between Stocks And Bonds 28:12 But Isn't Money Still Expensive?? 29:49 Andy's Pushback: Historically Tight Doesn't Mean Tight 42:24: Stock Market 52:35 MicroStrategy ($MSTR) 01:01:36 Why Arbitrage Funds Are Buying MSTR Convertible Bonds 1:18:02 Andy Summarizes His Macro Views