Financial Times/Whitney Baker/6-15-2022
“Most people alive today grew up alongside a simply historic rise in financial wealth. We know nothing but relentless asset appreciation, propelled by disinflation and falling rates. Liquidity outpaced the economy. So did asset prices. But violent financial and geopolitical regime change is upending that status quo and the bubbly valuations that hinge on it.”
USAGOLD note: Baker, who heads up a hedge fund advisory firm, says that we need to prepare for inflation and interest rates being much higher for much longer than the markets are “willing to price.” She sees a return to the 1970s and a new age of real wealth destruction.
