Market uncertainty and portfolio optimization take center stage in this discussion with Adam Damko, Chief Data Scientist at Allio Capital. With over a decade of experience applying machine learning in finance, Adam has worked on everything from spread forecasting to recession prediction in the fixed-income space. He is also the creator of Allio’s ALTITUDE AI, a systematic investment framework designed to optimize portfolios in real-time.
In this conversation with AJ Giannone and Joseph Gradante, Adam explains how predictive AI and macro investing intersect, why traditional portfolio models fall short, and what investors should focus on in a shifting economic landscape.
Key Takeaways:
(05:31) Parallels exist between the Reagan and Biden eras, but real economic change takes time.
(10:08) Government inflation metrics lag — Trueflation shows a sharper decline.
(13:29) The Magnificent Seven’s dominance is fading — diversification is key.
(18:06) Market uncertainty normalizes over time — adjusting strategies is crucial.
(20:32) Growth is coming but the administration remains cautious.
(22:50) Adaptive AI-driven portfolios offer better diversification and stability.
(25:51) Portfolio optimization is misunderstood — ignoring risk leaves value on the table.
(29:22) Sector positioning outweighs fundamentals in today’s market.
Resources Mentioned:
https://www.linkedin.com/in/adam-damko-cfa/
https://www.linkedin.com/in/agiannone-cfa/
https://www.linkedin.com/in/yoda-josephgradante/
https://truflation.com/marketplace/us-inflation-rate
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#Macroeconomics #PersonalFinance #InvestmentResearch