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Technological progress and capitalistic competition are powerful deflationary forces that are keeping global interest rates lower for longer. Unfortunately this has resulted in excessive state debt and inflated asset prices.
The million Bitcoin question is how long this can continue. Japan’s debt to GDP is heading for 250% of GDP and their debt bubble has remained intact. As have their many zombie companies.
The best investment paradigm is probably to focus on real, organic growth (not financially engineered growth). High growth is far less likely to come from large, existing industries and companies.
That’s why I prefer startups and scaleups with new business models in new industries.
Venture capital requires long term investments in diversified but illiquid shares. Portfolio should be a minimum of 10 companies with a minimum 10 year investment horizon.
