Joe Biden, the new American president, with the Fed led by Jerome Powell and his treasury secretary Janet Yellen seems to have opted for inflation as a way out of the crisis and to solve the major debt problems.
This decision, if it is confirmed, changes everything. This will radically influence the expectations of economic agents and therefore your own investment and investment decisions for the next 10 years.
If we evoke the 70s and the Volcker rupture of the early 80s to put an end to this inflation, it is not a question of replaying a remake of the 70s. It will be different, it is obvious, but we We are heading towards a period where we will tolerate higher inflation and presumably without raising rates for a relatively long period.
It is this tolerance towards slightly higher inflation and low rates that will be the hallmark of the new version of inflation.
This should leave significant upside potential for anti-inflation assets.
Precious metals of course, actions for some and obviously raw materials. I am deliberately setting aside real estate because it is the only asset you can borrow at a fixed rate for. I would also like to point out that insofar as the energy climate law imposes drastic changes, new real estate will undoubtedly be a very good opportunity for the next 10 years. There will be price reductions, but it is possible that these reductions are a function of the locations and the typology of the goods (old in laudable and no longer respecting the standards and no longer worth anything or almost, modern housing, modernized or recent and respecting the standards).
I will explain all this to you in the February strategies file, namely the type of inflation that we should have, the different phases, the interest of new real estate and the use of borrowing. I also tell you how to do it and how to go about avoiding the traps and asking yourself the right questions.
For those who want to know more it’s here.
For everyone the video dedicated to this topic is here.
It is already too late, but all is not lost. Prepare yourselves !