You're Getting the Regime Wrong | Warren Pies on What Debasement Means for Your Portfolio

The conversation centers on the concept of a "debasement regime," a psychological shift where investors prioritize protecting purchasing power over protecting principal. Warren Pies explains that this mindset, emerging post-GFC and accelerated by COVID-era fiscal stimulus, drives investment towards hard assets and managed futures beyond traditional stock-bond allocations. He argues that retail participation and speculation are key indicators of this shift, alongside declining savings rates and increased consumer risk-taking. Despite a weakening labor market and potential for economic slowdown, Pies suggests that tariffs and wealth effects create a complex economic picture. He remains bullish on gold as a hedge against institutional distrust and advocates for a portfolio construction that includes alternatives to navigate the debasement era.