“We are in a situation around the world in which many impulses are being brought into the market in order to stabilize the credit markets and stock markets and to give stability to the local economies. But this is a large amount of debt that is being added. A large amount of new money is being produced, and it is likely that the easiest way to repay this new debt is through monetization. “
As a result, asset prices could go up, but you could buy less with them. “The last time we had this type of situation was in the early 1970s, and even though you saw stock prices go up, the real return was that inflation was negative. And I think that’s the kind of situation we’re in now. “
Salzer is a leading proponent of alternative strategies, including a much-researched stance on Bitcoin. Private equity is an area that continues to drive trades among investors given the difficulties in bond yields.
Salzer said this area is much wider than most people appreciate. He explained, “Of course there are the big leveraged buyouts, which is the typical area that people associate with private equity. Then there’s the growth stock side venture capital, like investing in tech names like Shopify before they go public.
“And one of the growth areas that should be of most interest to investors is secondary private equity. Purchase of existing private equity portfolios over a third or three quarters of the fund’s life.