The “Sell America” Trade | Andy Constan on Why Rest of World Stands to Outperform U.S. Assets

Video Description

In this episode, Andy Constan of Damped Spring Advisors reveals why he has liquidated 100% of his US asset positions to bet on the "Rest of the World". He breaks down the looming financing headwinds created by massive AI capital expenditures and political promises, explaining how this borrowing spree creates a near-term drag on US equity and corporate bond prices. Constan argues that the era of US exceptionalism is fading, making Japanese and European assets far more attractive for risk premia and diversification now that their yields have normalized. He also predicts that while a recession isn't imminent, economic growth will likely miss lofty expectations, potentially forcing the Federal Reserve to cut rates more aggressively than the market has priced in. Finally, Constan shares his insights on why he remains long gold as a portfolio hedge and how investors should reposition for a period where global assets are set to outperform the U.S. He also explains why he is bullish on U.S. rates, as well as his views on gold and silver. Recorded January 20, 2026. Follow Jack Farley on Twitter https://x.com/JackFarley96 Follow Andy Constan on Twitter https://x.com/dampedspring Andy’s gold piece, “Glittery”: https://dampedspring.com/wp-content/uploads/2025/09/Glittery.pdf Follow Monetary Matters on: Apple Podcast https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez ___ Timestamps 00:00 Intro 00:47 Financing Needs "Enormous": Is Investment Boom A Risk To Markets? 10:01 Hyperscaler Bond Issuance To Explode Higher? 22:00 "Run It Hot" Economy? 31:56 Rising Global Yields Attract Capital Into International Markets 44:48 Rate Views: Bullish Short-Term Interest Rates (STIR) 48:50 Who Will Be Next Fed Chair? Does It Matter? 51:06 Gold & Silver 1:06:42 Greenland and Why Investor Allocations Are Increasingly Non-U.S. #trading #markets #investing #macro #stockmarket #macroeconomics #podcast