Maybe / Maybe Not.
All depends on how it ends.
No doubt vol pos assets would do well in a winter deflationary depression, but what if the world enters spring and then summer stagflation--an inflationary depression.
A price inflation does two wonderful things for a company: #1 the value of their tangible assets, or book value, increases, and #2 the revenue growth from inflation makes paying off the debt easier. As long as the costs lag the revenue growth things look good for the company as the workers wage suffers in real terms.
The nice thing for the worker who owns a home is that the nominal increase in wages makes paying off the house or student loans easier. Another huge benefit for the homeowner is the increase in value of the house, especially so if leveraged with a fixed rate mortgage.
In sum workers with debt gain, those with no debt lose. Anyone renting on a fixed income, 'investing' in MM is royally screwed.
If you look at history, such as Germany post-WWI, or recently in Zimbabwe you'll find the stock market was a fair (but not great) hedge against inflation. The problem with inflation eventually leads to a crack-up boom when it's left to run out, or a deflationary depression if the powers attempt to stop it by using traditional means.
In an inflationary depression the DOW could easily reach 20,000 or 200,000, or 2,000,000 depending on how many zeros one decides to add. If your hoping for the deflationary depression (which you are) watch out for the rising price of silver, your worst enemy, for silver is the stalking horse for the financialization of all commodities--the new money.
AI
