Core research

The global economy is shifting from a monetary-dominant to a fiscal-dominant regime. For decades, independent central banks could prioritize price stability due to disciplined government spending. However, unprecedented government debt levels are reversing the status quo.

For investors, this signals a new era of structurally higher inflation and currency debasement, favoring increased holdings in real assets like commodities and gold, inflation-linked bonds, and focusing on equities of companies with strong pricing power and low leverage.