Finally, the notion that we’ll jump the shark to the other side of Our Wishbone World is beginning to crystallize.

We’ve long been of the belief that all roads lead to deflation and that view remains in tact. What conceivably changed is that, with the Federal Reserve balance sheet ballooning $500 billion in the last month alone—an eye-popping 50%— the specter of hyperinflation has been introduced.

To be sure, Europe is in worse shape than the U.S. and it’s a stretch to suggest that the Euro will appreciate against the greenback. However, the laws of supply and demand dictate that as money supply increases, the value of the world’s reserve currency will devalue in kind.

Remember, the market is a forward-looking discounting mechanism. Hyperinflation need not manifest in a conventional form; the mere specter of it will be enough to shift perception into a tradable reality.

I believe we’ll soon see a seismic shift in how assets are valued. That could include China revaluing the Yuan or crude being denominated in something other than dollars. If that occurs, asset classes from equities to commodities would increase in “value” as the measuring stick used to denominate them declines at an accelerated pace.

The longstanding Minyanville mantra has been that capital preservation, debt reduction and financial intelligence are the hallmarks of any successful investment approach. We must now synthesize whether capital preservation equates to capital conversion to the Japanese Yen, Chinese Yuan or gold, at least until such time that it is confiscated.

What’s clear is that we’re wading through a unique historical juncture, one that nobody has ever experienced. The onus is on us to see all sides of the probability spectrum and allow for “outside the box” scenarios as we shape our risk profiles.

I am resolute in my belief that an “outside-in” recovery will one day arrive led by China and India. Just as the dot.com prophecy came true—albeit not before a tech crash—the golden age of globalization will also prove true, but not without a debt crash.

This current trading try—one that is skewed to the energy space (Weatherford (WFT), Transocean (RIG) and the Oil Service Index (OSX) with a spate of Ultra QQQ Proshares (QLD) tossed in for good measure—isn’t an attempt to game that global recovery. I’m not in the business of picking bottoms, I’m simply attempting to pick my spots.

As Mr. Twain was fond of saying, never let schooling interfere with education. While I continue to harbor profound big picture macro concerns, I’m trying not to let that opinion get in the way of making money.

R.P.