Category Archive: 9d) Fund and Hedge Funds

I like inflation-indexed bonds — or TIPS (Treasury inflation protected securities) — because they guarantee a real return. The markets are a zero sum game, and if you’re speculating, you’ll probably be the loser. But these bonds are among the safest asset classes you can find.

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Gold is now the second largest reserve currency, behind the US dollar. To understand why, you need to look at the history of fiat currencies (like the dollar) and hard currencies (like gold). The way I see it, we’re currently facing a classic currency devaluation similar to what we saw in the 1970s or the 1930s. In both of those cases, fiat currencies around the world all went down together — and also went down in relationship to hard currencies,...

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The reality is that AI is so revolutionary and so disruptive that it’s very hard to say for sure whether superscalers are currently priced accurately in the markets. But what will be even more impactful and is not adequately priced in is the effect AI is going to have on applications of it on company earnings, efficiencies, and the like. I’m often asked whether these future productivity improvements will convert to the profits and incomes needed...

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Ultimately, it all comes back to supply and demand. Debt costs are higher in the UK than in the US because the British pound is no longer a reserve currency. It’s not an effective storeholder of wealth because people aren’t transacting in it like they do with US dollars. Since many people around the world transact in dollars, that increases the demand and ultimately helps when it comes to servicing debt. @MasterInvestorChannel You can watch...

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The increasing political polarization we’re seeing today isn’t anything new. It’s similar to what we saw in the 1930s, and it’s even something Plato wrote about a couple thousand years ago. In democracies, people vote for their interests. And since people generally want more, politicians want to give it to them — and are willing to go into debt to make that happen. Ultimately, things reach a breaking point where discipline is needed. People want...

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