I have been thinking about the portfolio a lot recently. One reason is that I have been calling for higher inflation for a long time, and put a range of “inflationary"“ trades on - various long commodity trades, as well as long banks, while putting a range of short short interest rates sensitive trades on. The idea was to diversify away from the core GLD/TLT trade - but rather than diversify, I was getting what fund managers call “di-worse-ify”. If I had to give a reason, it would be that China is pursing a deflationary policy, while the US is pursuing an inflationary policy. And in industrial commodity world, China policy dominates
