
The AI Illusion Disguises Policy Failure
Now we can understand what Warren Buffett is telling us.
It is hard to believe that policy makers can balance everything out indefinitely.
In my view, key allocations to
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Now we can understand what Warren Buffett is telling us.
It is hard to believe that policy makers can balance everything out indefinitely.
In my view, key allocations to

The AI bubble has now reached an all-time record valuation level just as AI product return results are failing to meet expectations.
Passive Investing has reached a record scale

Market participants are highly committed to the bubble which policy makers won’t be able to sustain. It is crucial to make a distinction between excessive liquidity and “stimulus”, which leads

Excess policy stimulus is generating inflation, distortions, and weak long -term growth. The emerging trends are a small business depression, with a big business engineered bubble. The engineering is unsustainable.<br

“Gold has risen 89% in the past five years, compared to 85% for the S&P 500 and a disappointing 0.7% for the US aggregate bond index (as of May 17,

Inflation preparation is not apparent in most western portfolios, as discussed last week. But this issue is much bigger than that. In the 1970s debt levels, relative to GDP, were

Not only is the correlation between inflation and financial conditions very tight, and for twenty years, but this is the second derivative of inflation. In non-geek language, this means that

Gold and US Treasuries are already reacting to the possibility of a very different future investment environment, even as asset managers in aggregate are continuing to oppose this possibility even

Compounding is core to investing and yet widely and deeply misunderstood
“Best Investors” wholly embrace it. However, most investors miss it completely, right at the outset, and then never

“Despite inflationary pressures pervasive in the economy, we are witnessing what might be described as the most undisciplined monetary and fiscal environment in history.”
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