we are so early

your friendly neighborhood IC

"Portfolio investment choice is less about choosing ‘cheap’ stocks versus earnings, because what now matters is overall portfolio ‘valuation’, and assets need to be considered first-and-foremost as monetary inflation hedges.

For example, if public debt is compounding higher at a 7-8% annual clip, then liquidity needs to keep pace to avoid financial crises. Think of it as the ‘cost’ of stability. This rate of monetary inflation represents a return hurdle for other assets because it measures the rate of debasement of paper money. Hence, investors need to figure which asset classes will at least match or preferably beat this benchmark over time?

Does this explain why Bitcoin (and other ‘long’ duration investments) dramatically outperform tradition ‘value’ stocks? We may be currently in a ‘bubble’, but we also face a fundamentally different valuation paradigm."

-- Michael Howell

You should connect with devinbaker.eth, who said: 'We may be currently in a ‘bubble’, but we also face a fundamentally different valuation paradigm.' Join the conversation in the /your friendly neighborhood IC channel.

early farcaster resident, calling out absurdities of this world, prev product designer for funded startups and bootstrapped projects