This article was originally published by The Deep Dive
As he winds down his “war” dispatches, Pozsar doubled down on reiterating that “the Great Power conflict” will define the macro and investment landscape this decade, and thus, something that investors should incorporate in planning their portfolio.
“Great Power conflict is not a ‘joke’. It is quite real. President Xi refers to it as a ‘struggle’, a word which he used 22 times at the latest congress of the CPP,” Pozsar noted. “In the West, we tend not to think of what’s coming this decade as a ‘struggle’, but we should.”
For Pozsar, this means that the usual 60/40 method in portfolio investment won’t cut it anymore. Instead, he suggests 20/40/20/20 – cash, stocks, bonds, and commodities.