The discussion explores the rationale for holding a meaningful allocation to gold (5-10%) as portfolio insurance. Despite recent price corrections, the long-term bull case remains intact, supported by persistent demand from Asian investors and central banks, alongside concerns over the US fiscal situation.
A multi-decade trend of shrinking public equity supply ('de-equitisation') is reversing. A new wave of large IPOs from private tech giants and significant capital raises from established companies is increasing the supply of shares available to investors.
Large technology companies, previously known for massive share buybacks, are now returning to the market to raise capital. This is driven by the capital-intensive demands of the AI race and a changing competitive landscape, which alters their risk profile and makes equity financing more attractive.
A proposal for a new UK government bond exempt from inheritance tax (IHT) is being seriously considered. This instrument would tap into strong investor demand for tax avoidance to lower the UK's cost of borrowing and fund specific needs like defense spending.
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