Inevitable Inflation, Who is the Winner in the Second Half of 2026? | Shin Hwan-jong, Advisor at Korea Investment & Securities

Summary

Shin Hwan-jong discusses the structural shifts driving sticky inflation, including geopolitical conflicts, AI infrastructure investments, and massive government spending. He advises investors to adapt to this new regime by diversifying away from traditional safe assets and incorporating gold, real assets, and high-yielding bonds into their portfolios. The conversation also covers the weakening status of the US dollar and the structural decline of the Japanese Yen.

• Inflation is expected to remain sticky due to ongoing geopolitical tensions and massive capital expenditures in AI and defense.
• The US dollar's global dominance may slowly decline, prompting central banks to buy gold instead of US Treasuries.
• Gold is highlighted as the ultimate safe asset, with recommendations to buy on dips for portfolio hedging.
• Long-term US Treasuries will become attractive once yields peak and long-term growth expectations moderate.
• The Japanese Yen faces structural weakness, making it unattractive for long-term investment.
• Real assets, commodity companies, and data centers are favored in the current inflationary environment.
• Brazilian dollar-denominated bonds offer attractive tax-free yields for Korean investors.
• The Q4 outlook for Korean equities remains cautious due to a lack of macro and liquidity momentum.