In The Australian Financial Review I relay chats with billionaire Howard Marks and former US secretary of state Henry Kissinger that can help shape the way we think about investing; highlight that Aussie inflation expectations have surged to 4%-5%, which is way above the RBA's 2%-3% target and the highest levels recorded in some time (based on two different surveys and presumably a function of the soaring house price inflation); cite HSBC and Goldman analysis that suggests the domestic inflation cycle has troughed with the risk that it will surprise the RBA on the upside later this year; note that Deutsche Bank's outstanding Torsten Slok believes an inflation surprise is also looming in the US with the possibility the Fed may be forced to hike more than 3 times this year; and outline a recent trade that I like that hedges these hazards and appears to be cheap on the basis of our quantitative valuation analysis. Free (VIEW LINK)