In July 2007, the collapse of the subprime mortgage securitization market signaled the end of the financial environment most of us have operated in for spent our entire lives. Followed Ronald Reagan appointee Paul Volcker's stamping out of the 1970s inflation nightmare the U.S. enjoyed a 25 - year pattern of decreasing interest rates, increasing leverage, and "financial innovation" on a scale the world had never seen.
 

By 2007 a new era had dawned, and the outlook for U.S. equity markets remains highly uncertain. Despite the green shoots, many fundamentals of consumer and business finance, capital markets, and politics still represent significant risks. The volatile markets portend difficulty making money the same way we did in the last 25 years.
 

MacroGain Partners economic view is that there are four potential economic scenarios poised to unfold in coming years and investors and businesses that incorporate macro thinking into their plans will enjoy market share gains and be strategically positioned for greater growth.
 

Investors and managers that recognize that inflation is a likely component of most scenarios for the future will need to adjust portfolio and business strategy accordingly. Since inflation disproportionately benefits the commodity, agricultural, food and green energy sectors (or CAFÉ), our goal is to target investments in these sectors whose earnings will increase dramatically in a higher inflation environment.