Russell Napier: Financial Repression Is Back — And Investors Aren’t Ready | #615

Russell Napier, financial historian and strategist, joins the podcast to discuss how investors should adapt to a changing geopolitical landscape and global monetary system. He argues that traditional investment questions are becoming obsolete and investors should focus on understanding the implications of geopolitical shifts for capital flows and inflation. Napier suggests that financial repression, similar to the post-World War II era, is a likely outcome given high debt levels, making it crucial to seek total return rather than just yield. He cautions against relying on GDP growth as a predictor of equity returns, pointing to China's stock market performance as a prime example. Napier advocates for considering investments in undervalued markets and sectors, such as shipbuilding, and recommends that investors calibrate their expectations with financial history.