“The Debasement Trade” - Luke Gromen on Gold, Bitcoin & The 100 Year Reset – Bankless

“The Debasement Trade” - Luke Gromen on Gold, Bitcoin & The 100 Year Reset – Bankless — Transcript

Market views

Bullish

GLD— Gold reserves will reach parity with currency reserves as central banks permanently shift away from treasury accumulation, driven by sanctions risk and the end of the dollar reserve system
FARMLAND— Productive real estate including farmland offers inflation protection as part of a historical Fugger portfolio model during currency debasement
BTC— Bitcoin will benefit from currency debasement dynamics and could become the West's answer to the East's gold standard in a potential monetary contest
COMMODITY— Commodity assets are preferred over frothy tech stocks at this point in the cycle during currency debasement
INDUSTRL— Industrial stocks will benefit from US reindustrialization, deglobalization, and reshoring trends as the economy shifts from financial to real assets

Bearish

TLT— Central banks will permanently avoid US treasuries due to sanctions risk and negative real rates, making long-term government bonds an inefficient investment even with potential yield curve control
TECH— Technology stocks are frothy and less attractive than industrials and commodities at this point in the economic cycle

Not investment advice.