From what I can tell, the only asset that has growth potential is gold and gold producing miners. Because it’s real money in a world of monetary confusion and deflation.Gold mining is now the most profitable business in the world. And gold now has the highest relative strength of any asset. People think gold is an inflation hedge, but the historical record shows it to behave very well during financial chaos. I think we’ll see financial chaos for at least a couple more years.
Wage deflation will come with unemployment. Credit is being repudiated. What will things cost on a cash basis compared to the rampant credit expansion we’ve seen over the last decade or so?
I think that certain life sustaining commodities will probably increase in cost as fiat currency is debased. But things that took massive credit to maintain their prices will come down. Without wage growth, how can credit based purchases increase or even hold their price? Loans would have to be almost interest free. But who wants to take on debt to purchase something that’s going down in price?
