Dirk Müller is considered a “crash prophet” – and now much of what “Mr. Dax ”had predicted. In addition, he is now the only one of these “crash prophets” who is currently not disappointing as an asset manager (in contrast to Friedrich & Weik and especially Max Otte, who is currently suffering heavy losses).
Dirk Müller does this by hedging his equity portfolio with short positions in futures – if the equity markets fall, the value of his equity portfolio also falls, but the short position entered into via the future can compensate for this. He is now gradually investing the profits from the short positioning in futures in shares that he believes are future-proof.
Dirk Müller: This crash is no accident
According to Dirk Müller, this crash is not a coincidence – and in a way even wanted. Müller can see this from the fact that after the Fed’s interest rate cut to 0% on a Sunday evening, the stock markets then collapsed – without the so-called “plunge protection team” intervening, which otherwise intervened at every critical Maarkt phase with support purchases. They wanted to teach a lesson, said Dirk Müller. The crash is now being “self-researched” because the financial system was already completely overstretched. Now many would have to sell everything – those with “deep pockets”, on the other hand, would already be ready to buy at much cheaper prices. So there is currently a big redistribution, especially towards large corporations like Amazon.
Hyperinflation is coming
According to Dirk Müller, we are currently experiencing a supply shock together with a demand shock combined with a pandemic – this combination did not even exist in the Great Depression of 1929 and the following. What will happen now? After a deflationary shock, which arises simply because everyone would have to sell everything, hyperinflation would follow – similar to what happened in Germany in 1922/23. More and more liquidity, which the central banks provide, then meets a still limited offer.
So what to do? According to Dirk Müller, you have to start investing in real assets such as shares and gold. Because it was very possible that the stock exchanges would close for a while, so that hyperinflation investors would no longer have the opportunity to buy real assets such as shares.
Whether you agree with all of Dirk Müller’s theses or not – a remarkable interview: