Forward Guidance Inflation Isn’t Going Away And Investors Own The Wrong Assets | Larry McDonald on “When Markets Speak”
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Mar 29, 2024 Larry McDonald discusses the shift from tech to natural resources due to impending inflation. Topics include macroeconomics, hard assets investment, inflationary landscape, commodities market, NVIDIA valuation, Bitcoin as a hedge, S&P 500 sector changes, effects of inflation on purchasing power, impact of interest rates, US dollar as reserve currency, and contrarian investing strategies.
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Inflationary Regime Shift
- More investors are focusing on sustained inflationary regimes.
- They are shifting towards hard assets like uranium, oil, gas, and metals.
Drivers of Inflation
- The fiscal and monetary response post-COVID is $16 trillion, four times the response to Lehman Brothers.
- A multipolar world with more conflicts and reshoring efforts further fuels inflation.
Capital Migration
- A multi-trillion dollar capital migration is underway from financial assets to hard assets.
- This shift is driven by a new inflationary age, similar to the period between 1968 and 1981.