Gavekal-IS

Gavekal-IS’s asset allocation method is based on two pillars. The first one rests on macroeconomic theories, while the second one imitates the approach of physicists when trying to describe an evolving system. In today’s report, Didier explains why this style of investing is still advising a maximum allocation to gold.

Didier is fascinated by the nascent discipline of econophysics. In this report, he looks at the study of physics over the last four centuries and the application of key concepts into finance theory that influences the way that money is managed.

We live in times of resurgent global rivalry, whose logic inevitably leads towards violence. In this piece Didier seeks to better understand the philosophical underpinnings of this human dynamic, since it plays into the question of whether economic development can proceed or gets disrupted. He then offers insights about the way that investors should play a disrupted world economy.

Didier checks in with both the economic four quadrants and the monetary four quadrants and updates readers on the resulting allocation changes in the Level 2.0 Portfolio.

Gold and bitcoin are two alternatives to fiat currencies that are both flirting with all-time highs. Since bitcoin has been dubbed “digital gold”, can it be considered gold’s younger sibling? Also, why are they both surging in price? Didier seeks to answer these questions by looking back at different forms of currency in economic history, while embracing the new language of the crypto world.

Didier recently read a well researched 70-page report on the oil market but at the end the author reached no firm conclusion about the trajectory of the crude price. Such a lack of clarity is a problem for portfolio managers as the price of primary energy is perhaps the most important economic variable when valuing financial assets. In response, Didier proposes a simple approach to assessing oil prices based solely on behavioral finance.