Talk Your Book: The Bull Market in Real Assets - Animal Spirits Podcast Recap

Podcast: Animal Spirits Podcast

Published: 2026-03-02

Duration: 31 min

Summary

The episode explores the growing demand for real assets, driven by innovation and infrastructure needs, rather than solely from a bearish outlook on other asset classes. David Shassler argues that real assets could thrive alongside equities in a new economic landscape shaped by advancements like AI.

What Happened

In this episode, Michael Batnick and Ben Carlson engage with David Shassler, head of multi-asset solutions at VanEck, discussing the significant shift towards real assets in the investment landscape. Shassler emphasizes that the current economic regime, influenced by factors such as the COVID-19 pandemic and rapid technological advancements, favors diversification and necessitates a focus on real assets. He highlights the importance of infrastructure and energy as crucial components to support innovations like AI, suggesting that the demand for real assets will only increase as these sectors develop.

The conversation delves into the composition of the VanEck Real Assets ETF (ticker RAAX), which provides a diversified exposure to various segments of real assets, including commodities, gold, and income-generating assets. Shassler explains that the ETF serves as a comprehensive tool for investors looking to allocate to real assets under one ticker. The discussion also touches on the structural changes in the market, with Shassler pointing out the need for significant investment to facilitate the transition into an AI-driven economy, thereby reinforcing the bullish case for real assets amidst evolving market dynamics.

Key Insights

Key Questions Answered

What are the main components of the VanEck Real Assets ETF?

The VanEck Real Assets ETF (RAAX) includes various segments such as gold, commodities, infrastructure, energy income, and more. Shassler mentions that about 23% of the portfolio is in gold, followed by 18% in commodities and other allocations in infrastructure and energy. This diversified approach allows investors to access multiple facets of real asset investing under one ticker.

How does the current economic regime influence investment in real assets?

Shassler argues that the world flipped upside down post-COVID, creating a new economic regime that favors diversification. He highlights that this environment necessitates a focus on real assets, as they are crucial for supporting the infrastructure needed for innovation, particularly in AI. The need for structural changes in the economy drives the demand for real assets.

Why is infrastructure considered critical for future economic growth?

Infrastructure is deemed critical because it serves as the backbone for advancements in technology, especially AI. Shassler explains that without the necessary infrastructure to support these innovations, the potential for economic growth is stunted. Therefore, investment in real assets related to infrastructure is essential for ensuring competitiveness in the global market.

What is the case for investing in gold as a real asset?

Gold is described by Shassler as the ultimate store of value, having outlasted numerous fiat currencies throughout history. Its embedded scarcity and role as a hedge in uncertain economic times bolster its appeal. The ongoing bull market in gold suggests that it remains a viable investment, particularly as part of a diversified portfolio of real assets.

How does VanEck determine the allocation of assets in its Real Assets ETF?

The allocation process for the VanEck Real Assets ETF involves a three-step procedure. First, they identify key real asset segments based on historical understanding and market dynamics. Next, they run an optimization process to determine the best weights for these assets. This systematic approach ensures that the ETF remains responsive to the evolving economic landscape.