And what the US has to do with it
Thank you for another insightful article, Florian. I subscribe to many investment services, including Kuppy's KEDM, and yours is one of the best. May I ask, do you short, for example, XLE, XLI , XME, etc, by using puts, or by buying an inverse ETF? If you short via puts, how do you choose the expiration date?
The UK tried to "choose inflation" under the Truss government, but the bond vigilantes seem to have forced it into austerity. So when you say CBs will choose inflation over a deflationary bust, which markets do you think actually have the option to do so?
As usual a well thought out analysis of connecting the dots. I agree with the assessment of the Fed accepting higher inflation. WE are in a supply problem not a demand problem. The ring fencing of the Reits is a problem that has implication for private equity across the board. While I have sold my energy investments. I will be looking for a re-entry point early in the new year when I get a better feeling about China re-opening.
Who are the long-term winners of structurally higher inflation if not energy /ccommodities, which you have shorted? And their prices are now (on average) even lower than then.
Which is why then (not now) is likely the time to go all-in on the long-term winners of structurally higher inflation.