Dylan Grice – ‘Central banks are going to overcook the economy’

TheMarketNZZ/Mark Dittli

Repost from 3-6-2021

cartoon of a hedge fund manager on the phone telling a client to buy gold

‘We have found there are plenty of managers running highly specialized, niche strategies which generate extremely attractive returns without being correlated to wider financial markets, or being subject to any of the risks we’ve just been talking about. Investors in traditional assets – public equity, private equity, venture, government bonds, corporate credit – are sitting on a time bomb. They have to keep their fingers crossed and hope that bomb doesn’t go off on their watch. If and when government bond yields rise, the traditional assets which have done so well will be smoked.’

USAGOLD note: Grice, a former investment strategist at Societe Generale, is one of those analysts to whom the global market cognoscenti pay a great deal of attention. This interview with that mind is a must-read. There are three approaches to the difficulties Grice communicates. One is to find a money manager, like Grice, who has a deeper understanding of what lies ahead and hope he pulls the right levers. Another is to develop that same deeper sense of what lies ahead, structure one’s investments accordingly and hope that you have pulled the right levers.  The last, and the most sensible in our view, is to diversify one’s portfolio completely and include gold and silver in the mix as the ultimate, unassailable store of value. It leaves much less to chance.

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