QUESTION:
Hi Martin,
I am a subscriber to your investor service and read your blog daily for years now. Thank you for your wonderful service to educate those who will listen.
You posted when the deflationary spiral is over, we “want to be diversified with equities with good capitalization, some spec-stocks, gold, silver, and real estate (greatly dependent on area).”
Once we are through this deflationary cycle, do you see global stock markets rising or will this be primarily a flight into US equities? I am looking at this for asset allocation and have a US dollar based perspective. Does foreign diversification in equity holdings even make sense for a US based investor whose sees the world priced in dollars (not euros, pounds, yen, etc.)?
Best Regards,
Rob
ANSWER: This will be a shift from public to private for the most part. It will not be exclusively a shift into equities. We should see gold and silver rise as well. Some regional real estate will hold its own, but not the high-flying areas that reached peaks in 2015.
