The investment community at large has become strangely polarized into the ‘inflation camp’ and the ‘deflation camp’. The protagonists of these two – mutually antagonistic – groups are occasionally dogmatic in their convictions; a trait that we ought to avoid as contrarian investors. Seemingly, if you’re – say – long commodities, you’re assumed to have adopted the prejudices of the ‘inflation people’. Likewise, if you’re – say – long government bonds, you’re assumed to share the ideas of the deflationists.


Does it have to be like this? Does one have to choose to be an orthodox inflationist or an orthodox deflationist?

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