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Free money threatens to unravel the fabric of the economy. Unprecedented liquidity measures by the FED in the wake of the pandemic drive interest rates to zero and foster a culture of complacency and entitlement. People don’t want to work anymore because they feel they don’t have to. As a consequence inflation spikes and the FED is forced to raise interest rates dramatically. Longterm yields accelerate from near zero to almost 5% within months. Asset prices collapse. We close our Biotech positions and invest more in Tesla and Nvidia. Both companies are strengthening their competitive position by driving innovation. The fund ends the year down 72%. 

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