Matthew Piepenburg, partner at Matterhorn Asset Management, is focused on preserving wealth, and right now he sees two major threats. In a recent interview with the Investing News Network he explained what they are.
“I think the biggest risk to wealth right now — one of the biggest — is just a lack of priority to risk thinking as opposed to just return thinking,” he said. “And obviously the other major risk right now is the hidden invisible risk of currency debasement.”
Elaborating on his first point, Piepenburg said he sees many people with a “head in the sand” attitude, similar to what he saw just prior to the dot-com and subprime bubbles. He’s also noticing market participants following status quo ideas.
“I see a lot of groupthink, a lot of consensus-think that the (US Federal Reserve) has our back, that there’s an airbag,” he said. “The sense that the Fed has outlawed recessions, that we can have deficits without tears and that no matter what — even if we have a major drop like we saw in March of 2020 — even that can be saved by mouse-click money at a central bank near you.”
Piepenburg doesn’t think there will be a soft landing, and pointed out that the world has already experienced multiple high-stakes issues, including the repo market implosion in 2019, the COVID-19 crash in 2020 and this year’s banking crisis.
“I wouldn’t say any of those are soft, and I don’t even think that’s the end of the game,” he noted. “To declare victory now is extremely arrogant — I think pride comes before the fall. I don’t think we’re even close to the end of this book yet.”
As mentioned, he sees gold as a way for investors to protect their wealth against those and other problems.
“No matter how you measure your wealth — whether it’s in a checking account or a portfolio — that’s kind of death by a thousand cuts. It’s slowly losing its purchasing power. And so gold to me is very simply a wealth preservation asset,” he said.
Watch the interview above for more from Piepenburg on gold and wealth preservation, as well as the new FedNow system and the potential for a new BRICS currency. You can also click here for our Rule Symposium playlist.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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