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Push & Pull
From themacrocompass.substack.com
Forget the buy-and-hold 2010s, where purchasing a 60/40 portfolio and going to sleep generated 10%+ returns per year with minimal volatility and drawdowns. The next 5-10 years are going to be different. Why? Two reasons, amongst many others. #1: The Growth and Inflation Pendumuls Will Swing Much Faster Politicians have experimented with large-scale fiscal stimulus and witnessed its powerful impact - in 2021, the US recorded nominal GDP growth around 10% (!). They are now also familiar with the flipside of it: inflation. As a result of fiscal injections and removals, the growth and inflation pendulums in the 2020s are ... (full story)