Hari Krishnan

The most likely long-term policy response to an over-levered, fragile system is inflationary monetization of debt, which will benefit assets that are sensitive to inflation. Investors should find ways to get long inflation-sensitive assets such as commodities, gold, or other real assets.

As passive investing continues to drive equity markets upward through flow-driven momentum, being long equities is attractive because the reflexive performance-flow loop can persist for a long time, even if fundamentals are disconnected. The risk of a sudden break is real, but the trend is powerful.