Crescat Capital letter to investors ….focuses on three key macro ideas that are complementary plays on the unwinding of currency and financial asset bubbles at a likely peak of a global capital cycle, the most leveraged in history:
1.Shorting US stocks at proven, historic-high valuations relative to underlying fundamentals with abundant catalysts for a near-term bear market leading to a US recession;
2.Shorting the overvalued and weakening Chinese yuan and China contagion plays to express the unwinding of a credit bubble that is unprecedented in scale and already bursting; and
3.Buying precious metals commodities at record deep value compared to the global fiat monetary base and related miners at record cheapness to the underlying fundamentals with an increasing number of important new signals showing rising US and global inflationary pressures and a hamstrung Federal Reserve that is unable to stop them.
These themes represent what we believe are the biggest macro imbalances in the world today
https://www.valuewalk.com/wp-content/uploads/2018/09/Crescat-Quarterly-Letter-The-Hamstrung-Fed1.pdf