Do We Really Understand Inflation? with Cullen Roche - WBD445

Location: New York
Date: Saturday 5th December
Project/company: Pragmatic Capitalism, Orcam
Financial Group
Role: Chief Investment Officer


In the 1980’s, Harry Browne devised an investment strategy
designed to perform well in all economic conditions. It is
referred to as the Permanent Portfolio. Investments are equally
allocated to stocks, bonds, gold, and cash. The objective is for
the portfolio to perform well in all economic conditions.


But Harry Browne’s strategy was developed in a period when short
term boom and bust debt cycles were still a feature of economic
systems. Since the global financial crisis of 2007, the debt
cycle hasn’t been allowed to function properly: recessions have
been mitigated through unprecedented governmental monetary and
fiscal stimulus programmes.


In this new paradigm, where inflationary pressures cast a large
shadow, what are the best investment strategies to take? Certain
Bitcoiners are all in on the new form of money designed for these
times. This does not fit everyone's risk appetite. But, having a
portfolio that lacks exposure to Bitcoin risks missing out in a
market that could otherwise be devoid of alpha.


Then there is also a geographical variable at play: the US has
certain inherent strengths that are not available to citizens of
other countries, significantly affecting investment
decisions.    


In this interview, I talk to investment strategist and founder of
the educational website Pragmatic Capitalism, Cullen Roche. We
discuss the drivers for inflation, the role of government,
investment strategies during uncertain times, and the place for
Bitcoin in asset portfolios.