IL05: The Road to Economic Stability ft. Andrew Smithers

<p>Today, we are joined by Andrew Smithers, Author, Economist and Founder of Smithers &amp; Co, to discuss how we can achieve economic stability, based on his book, “The Economics of the Stock Market”. We address the Q Ratio and why it is important for economic stability, how to use the idea of hindsight value to predict markets and how monetary policy has contributed to economic instability, the incentives for a company’s management and how to balance the level of leverage. Lastly, we discuss reasons why policy makers should be focusing on Q, what Andrew has planned for the future and much more.</p><p><strong>-----</strong></p><p><strong>50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - </strong><a href="https://dunncapital.com/DUNN%2050-Year%20Book-TTU" rel="noopener noreferrer" target="_blank"><strong>CLICK HERE</strong></a></p><p>-----</p><p><br /></p><p>Follow Niels on <a href="https://twitter.com/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>, <a href="https://www.linkedin.com/in/nielskaastruplarsen" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a>, <a href="https://www.youtube.com/user/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>YouTube</strong></a><strong> </strong>or via the <a href="https://www.toptradersunplugged.com/" rel="noopener noreferrer" target="_blank"><strong>TTU website</strong></a>.</p><p><strong>IT’s TRUE </strong>? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written&nbsp;<a href="https://www.toptradersunplugged.com/Ultimate" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>And you can get a free copy of my latest book “<strong>Ten Reasons to Add Trend Following to Your Portfolio</strong>” <a href="https://www.toptradersunplugged.com/10-reasons-shownotes" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Learn more about the Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Send your questions to&nbsp;<a href="mailto:info@toptradersunplugged.com%22%20%5Ct%20%22_blank" rel="noopener noreferrer" target="_blank">info@toptradersunplugged.com</a></p><p>And please <strong>share this episode</strong> with a like-minded friend and <strong>leave an honest Rating &amp; Review</strong> on&nbsp;<a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a>&nbsp;or <a href="https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW" rel="noopener noreferrer" target="_blank"><strong>Spotify</strong></a> so more people can discover the podcast.</p><p>Follow Kevin on <a href="https://kevincoldiron.substack.com/" rel="noopener noreferrer" target="_blank"><strong>SubStack</strong></a> &amp; read his <a href="https://riseofcarry.com/" rel="noopener noreferrer" target="_blank"><strong>Book</strong></a>.</p><p>Follow Andrew on <a href="http://www.smithers.co.uk/" rel="noopener noreferrer" target="_blank"><strong>Smithers &amp; Co</strong></a> &amp; <a href="https://www.amazon.com/Economics-Stock-Market-Andrew-Smithers/dp/0192847090" rel="noopener noreferrer" target="_blank"><strong>read his book</strong></a>.</p><p><strong>Episode TimeStamps: </strong></p><p><strong>00:00 -</strong> Intro</p><p><strong>02:15 -</strong> Introduction to Andrew&nbsp;</p><p><strong>03:28 -</strong> Key messages from his book</p><p><strong>06:42 -</strong> How is the Q Ratio constructed?</p><p><strong>14:34 -</strong> The idea of hindsight value</p><p><strong>23:31 -</strong> How Quantitative Easing caused instability?</p><p><strong>26:49 - </strong>How remuneration policies have led to an increased Q value</p><p><strong>31:14 -</strong> The incentives for management</p><p><strong>42:30 -</strong> Should policy makers focus more on Q?</p><p><strong>53:10 - </strong>The economic consequences of Alan Greenspan</p><p><strong>56:21 - </strong>Andrew’s plans going forward</p><p><strong>01:04:42 -</strong> Key takeaways from Niels</p><p>Copyright © 2025 – CMC AG – All Rights Reserved</p><p>----</p><p><strong>PLUS:</strong> Whenever you're ready... here are 3 ways I can help you in your investment Journey:</p><p><strong>1. eBooks that cover key topics that you need to know about </strong></p><p>In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. <a href="https://www.toptradersunplugged.com/resources/ebooks/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>2. 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