The $340 Trillion Problem

Where should investors allocate capital when bonds have no yield, stocks are disconnected from their intrinsic values, and currencies are at risk from excessive money printing?

"The $340 Trillion Problem" was written to explain our opinion as to a series of anomalies that presented themselves in asset markets since the financial crisis of 2008:  

1. As debt increases, interest rates decline.  
2. Governments can print money without causing inflation (Modern Monetary Theory).
3. Massive budget deficits do not “crowd-out” private spending.
4. Management teams that efficiently allocate capital under perform profitless “disrupters.”
5. Revenue growth matters more than profitability. 
6. Capitalism benefits the top 1% over the other 99%.  
7. China can finance the building of 100 "ghost cities" the size of San Francisco. 
8. The unprecedented demand for commodities from China sends commodity prices to 100 year lows vs. financial assets.
9. US equities trounce international equities, led by strength from the consumer.  
10. Negative yielding bonds are a “Safe Haven,” precious metals have little value.
11. Markets are efficient, and there is no place for active investment management.