Granular ETFs and diversification beyond core beta

Stijn Schmitz welcomes William Rhind to the show. William is the Founder and CEO of GraniteShares. Rhind provides insights into the current market landscape, emphasizing the early stages of AI development and the potential for significant transformation across various sectors. Regarding market volatility, Rhind attributes recent fluctuations to multiple factors, including potential Federal Reserve leadership changes, cryptocurrency market movements, and concerns about AI’s impact on software companies. He argues that we are in the early stages of AI development, with significant potential for innovation and disruption across industries.

Rhind highlights the ongoing bull market for hard assets, driven by global economic uncertainties, central bank buying, and concerns about currency debasement. He notes that emerging market central banks are actively diversifying their reserves by purchasing gold, viewing it as a strategic hedge against paper currencies. Platinum receives special attention, with Rhind explaining its unique market dynamics. He points out that platinum is about 30 times rarer than gold and currently sits in a market deficit. The metal’s future looks promising, particularly as previous bearish sentiment around internal combustion engines has dissipated and industrial demand remains strong.

Rhind suggests that while passive investing has benefits, too much concentration can potentially create market inefficiencies. He advocates for a “core and satellite” approach to investing, balancing long-term retirement strategies with more speculative investments.

Timestamps:
00:00:00 – Introduction
00:01:00 – Investor Demand Trends
00:02:00 – Market Volatility Drivers
00:04:28 – AI Bubble Debate
00:06:30 – Dot-com Bubble Comparison
00:10:45 – Commodities in AI Chain
00:12:40 – Energy Sector Opportunities
00:14:12 – Currency Debasement Thesis
00:17:03 – Precious Metals Bull Market
00:19:00 – Central Bank Gold Buying
00:22:02 – De-dollarization and Dollar Outlook
00:28:00 – Silver Market Dynamics
00:32:42 – Platinum Investment Case
00:39:30 – Passive Investing Trends
00:44:40 – U.S. Equity Market Size
00:46:12 – Concluding Thoughts

Guest Links:
Website: https://graniteshares.com
LinkedIn: https://www.linkedin.com/in/william-rhind-5434367

In 2016, Will Rhind challenged himself to find a way to do things differently. As a 18-year veteran of the ETF industry with experience working at, building and running, well-established successful ETF businesses, he made a keen observation: investing just isn’t as exciting as it once was. He asked himself, how do you bring back that excitement? As an experienced entrepreneur, he decided to answer that question by launching his own ETF company – GraniteShares was born. Will’s focus on disrupting the financial industry has taken GraniteShares from an idea to a successful start-up garnering the attention of Bain Capital and other well-known ETF investors who support his passion to create products that will change the way people see investing. Will spends his time outside of GraniteShares with his wife and three children. He’s on the Board of Directors of the Bath University Foundation, has a passion for classic cars, Manchester United, and travel – especially back to his roots in Aberdeen, Scotland, “The Granite City.” Will has over 25 years of experience in the industry.