The macro environment remains on a knife edge, Art remains the ultimate store of value
The macro environment remains on a knife edge. Rising yields, the expectation of structural inflation has there ever been a better time to take some risk off the table and diversify? ...Probably not. Art remains the ultimate store of value and posts strong gains even with the uncertainty of tomorrow. Pay 0 attention to Sothebys public auction numbers, the private market is alight right now. Year over year appreciation on fashionable artists are between 15-27% if anything can be said it is that we are not finding the caliber of art that owners are willing to sell.
In addition to all this stuff, there is another change that is so profound that most people haven’t yet got their heads around it. You get a higher yield than junk bonds by holding bitcoin and, if you switch to a stable coin like USDC, you get even higher yields. That means you are really not incentivised to sell and, even if you do, you are not incentivised to bring it back into the traditional system, unless you want to acquire some lifestyle chips. That makes the entire system so absorbing that it is a Super Massive Black Hole, not just for bitcoin but the entire digital asset system (and that is just the start; I’ll elaborate how big this is going to become in due course). But when I refer to it being THE macro trend – the only one that really matters – I am not being hyperbolic.
You see, equities are the second-best performing asset after bitcoin, but when you look at what is really going on, things aren’t what they first appear. So many people scream that inflation is coming but it is a near impossibility (outside of cyclical CPI ris- es) to generate goods or raw material inflation due to technology, globalisation, demographics and debt dynamics. Although no one sees it, we DO have inflation. It is massive and it is insidious. It is the devaluation of fiat currency overall. This is what so many people have got wrong. They were looking to the 1970s and missed the bigger picture You can see this too when you look at the SPX in Gold terms, it is near its mean, showing the equities are significantly overvalued but not ridiculously so...
The entire world we live in is currently US dollar sensitive, the narrative is just noise. Because, we know what lies behind the dollar in all this. The federal reserve. The reaction function is (and will be) MORE. More liquidity, more programs to support the house of cards. Relentless attempts to pin rates and weaken the dollar will probably do so.. but not without being forced to move by the markets. Not without pain. Then for a moment try to think about how big this could be for emerging markets, who will be freed of the dollar standard or of old technology infrastructure. Imagine how this wraps into the explosion 5G and 6G.
Just dare to imagine what this is all going to be worth as a space...
• The global equity market cap is $100tn.
• The global debt market is $283tn.
• The global derivatives market is $1 quadrillion.
The entire digital asset space right now is worth $1.7tn. It is going up 100x or 200x over the next twenty years. This is EVERYTHING that matters. You simply don’t have the choice to ignore it. Everything else is a sideshow for amusement and a few trades Withe the rise of NFTs, tokenisation, crypto, is and will be, the future of everything. What does well in a future environment of MMT and constant paper money stimulus? High level art Precious metals Crypto.
High quality alternative investment.
Gold vs currency basket of 30 leading fiat currencies.
M.Peat