This 40-Year Trend Just Broke. The Wealth Shift Has Already Started

For decades, Wall Street, our politicians, and so-called experts operated under the assumption that inflation had been conquered.

Investors got comfortable with rates pinned near zero and central banks flooding the system with liquidity. Too comfortable.

But in early 2020, I warned anyone who’d listen that the tide was turning.

I saw the signals others ignored: unchecked monetary stimulus, a wave of deglobalization, and a fragile supply chain that had been stretched to the breaking point.

I bet that in hindsight, you agree with all three points.

So I made a big move that, at the time, people told me I was crazy for making. Here’s a screenshot of the trade:

Fast forward five years and the result was inevitable.

Inflation returned, not as a blip but as a long-term structural force. What many so-called experts considered temporary is now shaping the investment landscape. Those who positioned early are ahead of the curve. Everyone else is playing catch-up.

I’m telling you this because there’s another shift happening, and just like in 2020, I’m making some specific moves, which I’m sharing with Premium Members below.

Now that bonds are breaking down after four decades of steady returns, investors are shifting their focus.

The old assumptions about safety and yield no longer apply.

As volatility increases and purchasing power erodes, capital seeks protection in places that benefit from inflation and disruption.

That’s why hard assets (and yes, I include Bitcoin in that category) are leading the market today despite recent pullbacks.

They are not just making a comeback. They are becoming the foundation of forward-looking portfolios.

Gold Isn't Just a Hedge Anymore

Gold has broken a 45-year downtrend relative to consumer prices. This is not a small move.

Investors are looking for something real. Something outside the reach of central banks and geopolitics. Gold and Bitcoin answer that need.

Silver is moving even faster. Mining stocks, long ignored, are showing leadership again.

This isn't just about gold. Industrial metals like copper and energy producers are showing strength too. Years of underinvestment and regulatory pressure have limited supply.

Now, new sources of demand are emerging. Grid buildouts. Electrification. Military expansion. AI.

Even oil and gas—dismissed in the ESG era—are seeing renewed attention. This cycle has legs. It's not a short-term trade.

The Global Order Is Changing. So Is the Flow of Capital.

The U.S. is no longer the automatic center of gravity for global investment. Capital is shifting. Regional trade is growing. Nations are rethinking their dependence on U.S. policy and currency.

Of course, in the long-term, don’t bet against the US. I wouldn’t.

But as President Trump develops his “America First” agenda, many other countries are following suit, and we can’t ignore this development.

Europe is one example. European equities just posted their best quarter in over 30 years. Banks are rebounding. Infrastructure spending is accelerating. As the U.S. looks inward, Europe is stepping into the vacuum.

China has been written off by Western investors. That’s a mistake.

Valuations are low. Innovation is high. Talent is returning. Companies like Alibaba are breaking out while U.S. tech leaders stall. The setup is compelling. The skepticism only adds to the opportunity.

Other markets linked to China or tied to commodity exports are also gaining traction.

Capital is rotating outward. Investors who still rely on the old “buy the U.S., forget the rest” model are falling behind.

The defense sector is becoming a major theme. After the U.S. “kill switch” scandal, many nations are seeking new arms partners. China is stepping in, supplying weapons to dozens of countries. Its defense industry is becoming investable.

At the same time, trade among developing nations is picking up. Infrastructure and energy firms based outside the West are becoming important players. These shifts are creating real opportunities.

What to Avoid

The old winners are under pressure.

Long-duration bonds face structural headwinds in a rising rate environment. U.S. tech monopolies are dealing with more regulation and fading public support. The social media giants are being questioned like never before.

The 60/40 portfolio is outdated. Investors clinging to yesterday’s playbook are likely to be disappointed.

Inflation is not going away quietly. The global economy is splintering into new alliances. Real assets are rising. U.S. dominance is being challenged.

I believe the U.S. will come out on top, it always does.

But…

Right now, it's not the time for old assumptions. It’s time to move capital into the trends that matter: hard assets, commodity producers, and regions ready to lead.

The change is happening. The market is already moving.

Make sure you're not the last to adjust.

Below is a list of trades I’m gearing up for. Like I did in 2020 with the gold trade above and in 2013 with Bitcoin, I’m looking at what’s coming and adjusting my high-conviction plays.

If you’re a Premium Member, you’ll see my write-up below.

Double D

P.S. This week continues to be highly volatile. Be patient. Don’t chase any trades you believe in but most importantly, reduce your position sizes and test the waters. Don’t just jump right in because, no, the water isn’t fine just yet.

🔓 Premium Content Begins Here 🔒