Part 5/11:
He argues that the data suggests we're already in a state of deflation, as the real rate of return on Treasury bills exceeds 6% after factoring in inflationary or deflationary pressures. With T-bill yields at 4.66%, and considering a potential 1.5% deflation, the real return surpasses 6%. This financial landscape incentivizes investors to shift capital from equities to safer assets like treasuries, which diminishes demand for high-growth stocks such as Tesla.