Investment booms are inflationary. If the latest multi-trillion-dollar AI capex projections prove even broadly right, the next boom could be large enough to reshape the investment landscape. The daily world GDP nowcast in the chart below already points to a sharp acceleration in world economic momentum, despite continuing Gulf and oil tensions. Strong economies, however, do not always mean strong financial markets. Money that is driving the real economy is money no longer available to inflate financial assets. This is why investors need to watch signal from bonds, commodities and monetary inflation hedges such as gold and Bitcoin.
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