The fiat currency democracies that we live in provide an in-built bullish bias for equities, especially after panics of the kind we recently went through. This is why we are bullish on global equity markets.

In a world of fiat currency, central bankers can increase the supply of money at the stroke of a pen. Fiat currencies are not backed by gold, or any other asset, just the good faith users place in the government and its printing press. So these are really “faith-based” currencies, prevalent almost everywhere today.