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:

Adam Damko

https://www.linkedin.com/in/adam-damko-cfa/

AJ Giannone

https://www.linkedin.com/in/agiannone-cfa/

Joseph Gradante

https://www.linkedin.com/in/yoda-josephgradante/

Truflation Index

https://truflation.com/marketplace/us-inflation-rate

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#Macroeconomics #PersonalFinance #InvestmentResearch