DISCLAIMER: Never this is any advise or suggestion to buy or sell any asset. This is just what I think about this and that and I am not reliable for any actions you take or not after you have read it or not.

Lets face it: Everybody has to be long something. Either you are long cash, bonds, stocks, tangible assets or properties. And sure thing, a mix (diversification) is always a good idea since the future is especially this: unknown.

We are facing not only economies from east to west in some kind of artificial coma but also a liquidity spree initiated by central banks and governments in these artificial-coma-economies: 12'000 billion as of today! Please understand, this is the one-year gdp of a list of countries: Germany, UK, Canada, Russia, Mexico, Switzerland, Israel and Singapore -- cumulative! And this money is not circulating in a financial sphere as the QE's from 2008 to 2019 did: from central banks to bonds and stocks and back. No, this money is injected directly into what is called real economy and of course it directly increases prices or devalues money.

So, in this light cash is not an asset to be long in the medium term -- regardless of the currency, as all relevant central banks move in the same direction in this aspect.

Bonds aren't very promising neither as all these big spender programs launched by governments from east to west have to be financed somehow. When bond yields should stay the same in this environment, central banks have to ramp up their government bond buying budgets a lot -- the classical government financing with all implications and by-products. Otherwise, significantly rising yields will decrease bond prices and make it probably one of the worst investments in the coming years.

Overall, intangible or financial assets are probably a bad choice in the coming years.

Now, I see some value in being long stocks, especially in high quality companies with a historical track record of steady dividend payments. There is some risk, of course, especially in situation of artificial economic-coma in many countries, right now. But overall, stocks of substantial companies with steady profits are not only a relative-low risk investment but also a good choice when it comes to an inflationary scenario.

Another asset that will probably profit heavily from such a scenario is the class of tangible assets. They source their beauty from backlog demand, intrinsic value, factual limited supply, and particularly no counter-party risk. Some rose already a lot in price and will either stagnate or deteriorate in value, but many did not and these price-lagged tangible assets are what will return the most joy in the coming years: from a collectors perspective as well as from a investors perspective.

So, keep in mind: You have to be long something. Make your choice or contact us to discuss in detail.

DISCLAIMER: Never this is any advise or suggestion to buy or sell any asset. This is just what I think about this and that and I am not reliable for any actions you take or not after you have read it or not.