Once In 50 Year Crisis Hits In 2026, Which Assets Will Survive? | Komal Sri-Kumar

Summary

Komal Sri-Kumar warns that the US faces stagflation in 2026, with inflation above 3% and a recession driven by Fed mismanagement and trade wars. He expects another Fed cut in January, a steeper yield curve, and higher long-term yields. He favors short-term T-bills and precious metals, expects gold at $5,000 by end-2026, and warns against 60/40 portfolios, equities, long-term bonds, high-yield credit, and fiat currencies.

• Komal Sri-Kumar expects 2026 stagflation: inflation above 3% plus a recession.
• He criticizes Fed reliance on hunches, balance-sheet expansion, and political pressure.
• He disagrees with market pricing and expects a January Fed rate cut.
• He sees a steeper yield curve and warns that long-term bonds can get hit.
• He favors short-term T-bills and gold/silver, with gold forecast at $5,000 by end-2026.
• He warns against simple 60/40 portfolios, equities, long-term bonds, and high-yield credit.
• He says the US dollar is being debased and no fiat currency is a good alternative, so precious metals are preferred.
• Trade wars are expected to remain the dominant theme in 2026.