Energy Stocks as a Hedge in an Inflationary World

about 1 month ago

Louie Goff

"So in the old days, you know, the ultimate portfolio was 60% equity and 40% bonds. That portfolio died with COVID and remains dead because the policy settings have now shifted structurally towards far more inflationary conditions. Today, for the first time in my adult lifetime, one ounce of silver buys a barrel of oil. I tend to believe energy stocks are the new bonds in a world in which bonds no longer work."

Louie Goff explains that the traditional 60/40 portfolio model is obsolete due to new inflationary policies and fiscal stimuli. He highlights an unusual market signal—a silver-to-oil ratio inversion—as evidence of shifting asset dynamics. With bonds failing to offer reliable returns, he asserts that energy stocks have now taken on a bond-like, hedge role, a view that could influence portfolio allocations as the market evolves toward 2026.

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