The Dissolving Glue: Navigating the Era of Micro-Volatility

Today's episode examines the profound loss of cohesion across global markets, from the fragmentation of S&P 500 correlations to the weaponization of supply chains. We explore why the era of predictable averages is ending, forcing investors to move beyond passive indices to find alpha in a world of extreme, independent outliers. Read this edition in full at https://www.pers-int.com/?digest=Macro%2C%20Geopolitics%2C%20Investing%20Evening%2FCompact_Digests%2Fdaily_digest_compact_2026-05-11_17-30-17.html&channel=Macro%2C%20Geopolitics%2C%20Investing%20Evening&latest=1 0:00 - Introduction 1:01 - The New Era of AI: Beyond the Hype and Hallucinations 8:14 - Geopolitical Friction and the Fragile Global Supply Chain 12:33 - Inflationary Shocks and the Unpredictable Macro Landscape 16:50 - The Death of the Passive Index? Finding Alpha in a Decoupling Market 19:41 - Global Shifts: From China's Re-rating to the Future of Stablecoins 22:02 - Conclusion Referenced sources: - "UK PM Leadership Threat, Trump Slams Iran Proposal, Soaring Emerging Markets" (Bloomberg Daybreak: Europe Edition) - "Bloomberg Surveillance TV May 11th, 2026" (Bloomberg Surveillance) - "US & Iran Wrangle Over Deal Terms to End War" (Bloomberg Surveillance) - "Tyler Goodspeed on Challenging the Way Economists Look at Recessions" (Macro Musings with David Beckworth) - "Evolving Money Stablecoins in Practice and Policy (Sponsored Content)" (Masters in Business) - "Why Generative AI Still Can't Trade David Wright on How Quant Alpha Actually Is Done With Machine Learning, Decision Trees, and Gradient Boosting" (Monetary Matters with Jack Farley) - "The Bank of England's Megan Greene on Monetary Policy in a World of Supply Shocks" (Odd Lots) - "AI's New Trillion Dollar Mission Delete Middle Management" (Prof G Markets) - "ROI not AGI (Guest Leonid Mironov)" (The Market Huddle) - "277. How to make green energy a vote winner" (The Rest Is Money) - "Marc Andreessen on Builder Culture in the Age of AI" (The a16z Show) - "SI399 AI, Inflation and the Portfolio That Refuses to Sit Still ft. Alan Dunne" (Top Traders Unplugged) - "UBS On-Air Paul Donovan Daily Audio 'Accepting the totally unacceptable'" (UBS On-Air: Market Moves) - "Signal over Noise The case for active investing" (UBS On-Air: Market Moves) This episode is independent commentary and is not affiliated with, sponsored by, or endorsed by the sources listed above.