Monetary debasement has been a recurring process throughout economic history, with governments and central banks seeking ways to manage mounting debts and economic crises. In its simplest form, debasement refers to the reduction in the value of a currency, historically through lowering the precious metal content (such as gold and silver) in coins, and in modern times through excessive creation of money. While these measures have sometimes provided short-term relief, they carry hidden costs that can have profound long-term implications.

‘Liberation Day’, announced on the April 2, was a game-changer and yet another warning shot fired by the Trump administration. The ensuing 90-day pause brought additional volatility to the markets, resulting in sharp fluctuations that felt like financial whiplash. The global tectonic plates are shifting, and everyone must adjust.

“The trend is your friend, until the end when it bends.” This old Wall Street saying feels particularly relevant after the first quarter of the year. While Team Trump pushes to “Make America Great Again”, US investors are selling their positions in the Magnificent Seven to buy some European and Chinese equities. Meanwhile, ‘risk-free’ German bonds had their worst time since the fall of the Berlin Wall. Buckle up!