Key insights
- A noted macro strategist predicts a significant shift of $300T from bonds to hard assets, driven partly by concerns over US debt and inflation. This suggests potential downward pressure on bond prices and a search for alternative inflation hedges, possibly impacting equity valuations if investors rotate out of stocks.
A proven macroeconomic research guru, who originally advised sovereign wealth managers in the 1980s to get into bonds, is telling the same crowd this week that $300 T (trillion) will move from bonds into hard assets in the short to medium term.
Part of this is surely US debt that the fed would love to inflate away, but surely not all govt bonds across the world?
Why is he so bearish on all bonds globally? What safe bets are left to beat inflation when the market is at a high PE, and all bonds are bad? What other assets are available as alternatives?