Despite a high concentration of global equity index in a tiny cluster of companies reliant on uncertain technology profitability, stocks remain the least risky option compared to alternatives. Space X trades at ~100x sales, while Anthropic targets a $2tn valuation on $4.59bn revenue. Cash loses purchasing power, with electricity bills up 50% over five years.
Global equities rose 70% in five years, offering inflation hedges through price increases and earnings growth. Government bonds aren't risk-free either; a 30-year UK gilt issued at £100 now trades at £40. Index-linked bonds profit only if inflation exceeds expectations.
The US faces the most pressing debt issuance issues, with over $40tn in debt and $7.25tn in bills needing refinancing within a year.
Source: Financial Times Markets · Summarized by HeadlinesBriefing