Holding cash is a losing strategy because governments consistently respond to economic crises by printing money. This devalues savings, effectively forcing individuals to invest in assets like stocks simply to protect their purchasing power against inflation.

A 100-year chart of the S&P 500 priced in gold shows a major cyclical peak was hit in late 2021, similar to 1929 and 2000. This inflection point suggests a long-term, decade-plus trend reversal favoring hard assets like gold and Bitcoin over U.S. equities.

In an economy where currency is being systematically devalued through money printing, holding cash is a losing strategy. The only way to preserve wealth is to own a diverse basket of 12-15 uncorrelated assets (e.g. stocks, commodities, real estate) that are subject to different economic pressures.

Contrary to conventional wisdom, re-accelerating inflation can be a positive for stocks. It indicates that corporations have regained pricing power, which boosts earnings growth. This improved earnings outlook can justify a lower equity risk premium, allowing for higher stock valuations.

Having lived through hyperinflation where money became a meaningless number, the real store of value is owning productive assets. A portfolio of quality businesses that provide real goods and services offers tangible protection that fiat currency cannot, as these businesses can adapt and reprice.

Owning multiple stocks or ETFs does not create a genuinely diversified portfolio. True diversification involves owning assets that react differently to various economic conditions like inflation, recession, and liquidity shifts. This means spreading capital across productive equities, real assets, commodities, hard money like gold, and one's own earning power.

Profitable companies act as a hedge against currency debasement. They issue long-term debt at low fixed rates, effectively shorting the currency. They then invest the proceeds into productive assets or their own stock, which tend to outperform inflation, benefiting shareholders.

Contrary to popular belief, the current upward inflationary pressure is a net positive for equities. It is not yet at a problematic level that weighs on growth, but it is high enough to prevent a more dangerous disinflationary growth scare scenario, which would trigger a full-blown "risk-off" cascade.

Contrary to popular belief, Vanguard's chief economist suggests that in a high-debt, low-growth future, overweighting fixed income is superior to holding gold. This assumes the Fed will maintain high real interest rates to fight inflation, making bond yields more attractive than equities, which would face a lost decade.