1970s vs Today: Another Chaos = Opportunity Set Up
Level 4 - Turbo Autist
Welcome Avatar! Pretty important update here, it looks like we’re repeating a mini version of the 1970s. Here we’ll outline what assets worked then, what is no longer relevant and compare it to 2020 to today. We’re definitely not in the camp that we get the same 14% inflation seen in 1970s. However, a lot of the general trends are similar.
The biggest things we’d say are:
Go back and make sure you’re adjusting your views on what is “necessary”. Don’t compare a safe company in 1970 to today. Safe in the digital era is completely different
Practically everything happens with a lag. Even during the 2020 inflation pick up, riskier assets like crypto didn’t move until the wealth effect took place
Income inequality is MASSIVELY different. Do not think about what a top paid employee will do, think about what the top 1% wealth holders will do
On that note lets get started!