Changing Interest Rate Regime and Its Impact on Markets

James Grant believes that we may be entering a new phase of rising interest rates after a 40-year decline. He emphasizes that this long-term shift can lead to changes in investor behavior, favoring yield investments and value investing over speculative tech stocks. Grant suggests that correlations between different asset classes and economic activity may also change in this new interest rate regime, creating new opportunities. He points out the potential benefits of investing in gold in this environment and discusses the increasing interest of central banks in acquiring gold as a hedge against the dollar. However, he notes that the sentiment of de-dollarization may be more of a political PR rather than a significant financial shift.