Buy the Everything Bubble or Lose to Inflation?
Buy the Everything Bubble or Lose to Inflation?
Heresy Financial: 1-15-2026
As an investor, you’re likely no stranger to uncertainty. But today’s market conditions have left many of us scratching our heads. With asset classes across the board – from stocks and real estate to gold, silver, and commodities – hovering at or near all-time highs, it’s natural to wonder: are we in an “everything bubble”?
And if so, should you stay invested and risk a potentially devastating market crash, or hold onto cash and watch your purchasing power dwindle as inflation continues to rise?
In a recent video from Heresy Financial, market educator Joe Brown tackles this critical dilemma head-on. Brown, a former stockbroker with a unique perspective on the markets, argues that labeling the current situation a bubble oversimplifies the issue.
Instead, he suggests that the root cause of rising asset prices lies in the significant loss of purchasing power of the U.S. dollar.
Brown’s insight is that when you measure asset prices against other stores of value, like gold, the picture changes dramatically. Many assets that appear expensive in dollar terms are, in fact, becoming cheaper when measured against gold.
This indicates that the rising prices we’re seeing aren’t solely the result of overvaluation, but rather a reflection of the dollar’s declining purchasing power.
The culprit behind this debasement is inflation, fueled by a combination of factors including Federal Reserve policies, quantitative easing (QE), and a surge in the money supply. In this environment, holding cash is a losing proposition, as the value of your money erodes over time.
So, how can investors navigate this challenging landscape? Brown recommends a two-pronged approach. First, he advocates for a diversified portfolio with multiple uncorrelated asset classes.
This allows you to rebalance your portfolio and capitalize on relative mispricings without trying to time the market. By spreading your investments across different asset classes, you can reduce your exposure to any one particular market.
Second, Brown suggests allocating a small portion of your portfolio to an aggressive trading strategy, designed to capitalize on market volatility and chaos. His own method has delivered an impressive 36.4% annualized return over the past five years, outpacing major indices by a significant margin.
Looking to the future, Brown warns that Federal Reserve policies are shifting back toward liquidity and monetary easing, signaling continued inflation and asset price inflation. As a result, investors can expect increased market volatility, with frequent bear markets likely to persist. To thrive in this environment, you’ll need strategies that can handle both growth and risk.
In conclusion, the “everything bubble” dilemma is a complex issue that requires a nuanced approach. By understanding the root causes of rising asset prices and adopting a diversified, proactive investment strategy, you can position yourself for success in a rapidly changing market. Watch the full video from Heresy Financial to learn more and take the first step toward securing your financial future.
TIMECODES
0:00 Assets Are in an Everything Bubble
0:21 Staying in Cash Means Losing Purchasing Power
0:50 Gold Silver and Stocks at All Time Highs
1:23 Commodities Are Breaking Records Too
1:43 The Cost of Living Keeps Rising
2:28 The Most Important Question: Compared to What?
4:21 Why Bubbles Are Usually Isolated to One Asset Class
5:11 The Everything Bubble Is Driven by Currency Debasement
6:08 Gold vs Stocks Shows No Clear Bubble
6:51 Bitcoin Appears Expensive Relative to Gold
7:31 How to Navigate the Everything Bubble
8:11 Diversify Across Uncorrelated Asset Classes
8:52 Rebalancing Between Assets Buys Low Sells High
10:04 The Barbell Approach to Portfolio Allocation
10:44 My 36% Average Annual Return Strategy
11:12 The Federal Reserve Restarted Quantitative Easing
12:00 Banks Will Do QE for the Fed Through Deregulation
12:42 Expect More Volatility and Bear Markets Ahead
13:17 Profit From Chaos Instead of Sitting on Sidelines