Wealthion - Be Financially Resilient Larry McDonald: Inflation, Energy Shocks & The New Economic Paradigm
Oct 24, 2024
Larry McDonald, best-selling author and founder of The Bear Traps Report, predicts a surge in inflation and energy prices, driven by geopolitical risks and tech demands. He explains why traditional investment strategies will fail in this new landscape favoring hard assets like oil and uranium. Brett Rentemeester of WindRock Wealth Management shares his insights on navigating these economic challenges and the need for strategic investments amid concerns of a looming energy crisis. Together, they highlight the urgency of adapting to changing market dynamics.
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Lehman Book Informs Today's Views
- Larry wrote A Colossal Failure Of Common Sense about Lehman and the 2008 crisis and it sold widely.
- He uses that crisis to compare the $4T Lehman response to the $16T of recent fiscal and monetary stimulus.
Market Regime Is Shifting To 1970s Style
- The current market regime resembles 1968–1981 with sustained inflationary forces returning.
- Portfolio construction must adapt from a 2010–2020 bias to one favoring commodities and hard assets.
AI Will Drive Massive Energy Demand
- AI growth will materially increase electricity and raw-material demand from data centers.
- The U.S. grid and mining capacity are not sized for that wave, implying big infrastructure needs.