Riding the Thin Edge of a Rail with Risk Reversal

Guy Adami and Dan Nathan, the OG's of financial influence and founders of the Risk Reversal media empire, join the Express to reveal their processes and approach to trading the markets while talking about them all day long. Hear why they are bearish, where the risks are, and their rankings of the best rock bands of all time. Plus, why the calls for the demise of the U.S. dollar may be #TooSoon.

Meet Guy and Nathan

Guy Adami is an original member of CNBC’s Fast Money. He is currently the Director of Advisor Advocacy at Private Advisor Group in Morristown, New Jersey, which is comprised of a network of nearly 600 advisors with assets approaching $17 billion.

Guy began his career at Drexel Burnham Lambert in 1986 and was quickly promoted to Vice President and head gold trader at the firm. In 1996, he joined Goldman Sachs as their head gold trader and was one of the many proprietary traders within the Fixed Income Currency and Commodity division. In the spring of 2000, Adami joined the U.S. Equities division of Goldman Sachs where he was put in charge of the firm’s Industrial/Basic Material group.

Dan Nathan is the principal of RiskReversal Advisors, founded in 2016, an advisory firm that offers consulting services to investment banks, investment advisors, and private companies.

Dan has spent much of his 25-year financial career as an equity and options trader. He has worked at hedge funds (SAC, Cheyne, & Exis Capital), within the equity derivatives group of Merrill Lynch, and as a sole proprietor.
 
Dan was a regular panelist on CNBC’s Options Action from 2009 through 2019 and has been a regular panelist on CNBC’s Fast Money since 2011.

What's in this Episode?

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Investopedia's Financial Literacy Resource Center

This week, we're going to take the term ourselves. And that is because April is national financial literacy month, but it's our mission here at Investopedia every month—you know that! We believe that it's never too early or too late to begin learning these skills and applying them in your daily life.

Managing our finances and planning for the future can seem pretty daunting at times, especially after the year we've just lived through—a 40-year high in inflation, a bear market, worries about a recession, a banking crisis—it's safe to say we've been through a lot in our financial lives recently. But having that strong, fundamental understanding of how to use your money—no matter the circumstances—is core to creating stability for you and your family.

However, the basic financial skills that adults need often aren't taught in a classroom. Technology has helped open those doors—it's true—but more education about these new platforms and assets is required, and that's what Investopedia does best. We've committed to extending our reach and resources to schools and underserved communities that have traditionally been left out of this important conversation. This year, we've created free curriculum materials to support today's investing environment, and we're going to link to them in the show notes. They're in our Financial Literacy Resource Center, and we've updated our guides for adults of all ages too.

While this is only the beginning, these resources will help you become an engaged and educated participant in today's ever-evolving financial markets. We know that a lot of you who tune into the Express every week are already well on your way to building a strong financial foundation, so we ask you to share the love with people in your lives and community who are just getting started—pay it forward, as they say—and we wish you all a happy month, year, and future.

Links for Show Notes

• What is a Bear Trap?
• What is a Reserve Currency? The U.S. Dollar's Role and History
  
• The Bretton Woods Agreement and the Institutions It Created
  
• International Monetary Fund (IMF): Macroeconomic and Financial Data
• Consensus Estimate: Definition, How It Works, and Example
  
• Backwardation: Definition, Causes, and Example
  
• Risk Reversal: Definition, How It Works, Examples
• Financial Literacy Resource Center on Investopedia
• What to Expect in the Markets This Week
  
• CNBC Fast Money