“repatriate your money and buy domestic assets. Um you get capital gains free if you sell and from now on there'll be no capital gains at home but if you keep buying abroad there'll be capital gains [.”
South Korean equities are ripping higher as semiconductor giants like Samsung and SK Hynix drive 30% index weights and local financials deliver strong returns.
“I've started to to change my tune and say, you know what, there's now actually really quality companies to to buy in China. [...] because you have fairly weak growth and because you have low inflation”
Investors should scoop up Chinese equities as emerging world-class industrial companies pair with unconstrained money printing after a 12-month slump.
“where I think you have the highest odds to be honest remains the inflationary boom... you buy value stocks and metals. And financials because you typically get a steeper yield curve.”
With Japanese banks already crushing it as lending margins widen, buy financials to capture the upside of the inflationary booms politicians naturally create.
“I think it's a story for the next 12 months because the yen is now so cheap and the JGB yields are starting to move higher... when do the Japanese start repatriating capital.”
With Japan's yield curve steepening, local investors are dragging their massive foreign capital back home, setting the yen up for a major rally.
“there's a lot you know very exciting changes occurring all across Latin America political change corporate governance changes... all of which argue for a rerating of local assets that are deeply deepl”
A pronounced rightward political shift sweeping across 7 Latin American nations triggers a massive valuation rerating for deeply discounted local assets.
“The new portfolio... what you now need is 60 equity, 20% energy, 20% metals.”
Buying energy producers shields your portfolio from the 1 of 4 economic scenarios where spiking oil prices trigger a devastating inflationary bust.
“If you're an inflationary boom, you buy value stocks and metals... what you now need is 60 equity, 20% energy, 20% metals.”
With politicians locking democracies into 1 endless inflationary boom to fund massive budget deficits, gold serves as the ultimate shield for your wealth.
“If we don't get 100 to $120 on oil and if the US government continues to run budget deficits of 7% of GDP I think the highest odds are, you know, you're going to be in an inflationary boom... you buy ”
With the US running massive budget deficits to fund political promises, ditch the crowded 18% semiconductor weight and buy cheap value stocks.
“That's why I've been a bear on government bonds... because when you go crazy on fiscal policy the odds of a deflationary bust kind of disappear by the wayside. Bonds become sort of useless in your por”
Massive US budget deficits block 1 of the 4 economic scenarios by preventing a deflationary bust leaving long-term government bonds as dead money.