Sisyphean Printing Will Kill The Dollar & Bonds
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
For investors, there are four critical, but simple, puzzle pieces. The majority of investors will take the wrong road, however, because they are more comfortable staying with the trend than anticipating change.
Understanding these four puzzle pieces will not only avoid total wealth destruction, but also create the opportunity of a lifetime.
The next five to ten years will involve the biggest transfer of wealth in history. Since most investors will hang on to the bubble markets in stocks and bonds, their wealth will be decimated.
The four puzzle pieces that will lead to fortune or misery are: Stocks; currencies; interest rates; and commodities. If we put these four pieces together, the conundrum of the direction of markets and the future of the world economy will be clear. But sadly, most investors will find it difficult to connect the four pieces.
Up for discussion: Eternal printing; commodities; gold—the king of metals; the dollar and currencies; interest rates; Greenspan and low interest rates; print until you are skint; stocks; the Buffett Indicator—massive overvaluation of stocks; and stocks will enter an air pocket.