Behind the Balance Sheet #32 The “Do-Gooder” - Jonathan Ruffer on Inflation, Yen Upside & Why the Equity Bull Market May Soon be Over
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Mar 21, 2024 Jonathan Ruffer, a successful investor and financial historian, predicts the Yen could double and discusses why the equities age is over. He shares insights on inflation, challenges in the investment landscape, and the evolving investment approaches. The episode also features a unique interview where Jonathan asks a difficult question.
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Equities Age Is Likely Over
- Equities may have peaked as the dominant long-term investment class.
- Jonathan Ruffer argues decades of investor-friendly policy, stock options and globalization created an era now reversing toward debt and fixed income.
Debt And Globalization Amplify Market Risk
- Excessive debt and operational leverage distort markets and make crashes more likely.
- Ruffer compares globalization and just-in-time efficiency to gearing, saying both amplify returns but increase systemic danger.
Deglobalization And Wages Make Inflation Persistent
- Inflation is likely to be persistent due to deglobalization and rising wages.
- Ruffer expects reshoring supply chains and stronger labor bargaining to raise costs and sustain higher price levels.