In this article, finance writer Byrne Hobart analyzes the prop trading firm Jane Street. He talks about the aspects of Jane Street that make it different from other trading firms while also touching upon the eternal question: Are high-powered trading firms a net-good for society?
What does liquidity provision have to do with rationalism? Well, based on the overlap between the two communities, more than you would think! The common throughline connecting both of them is the importance of quantifying your beliefs. Both rationalism and prop trading value the ability to reason under uncertainty: thinking in terms of distributions instead of binaries or point estimates.
If you find this topic interesting, you should check out the book <em>The Laws of Trading</em> by Agustin Lebron, a former Jane Street trader. Also recommended is Lebron's interview on the Lunar Society.
I am currently reading this book - https://www.amazon.in/Laws-Trading-Traders-Decision-Making-Everyone-ebook/dp/B07SZ9W3LX
In the book there is a chapter on Risks and the author talks at length about understanding your risks and how to deal with them. But the most important message is that you get paid for taking risks.
The issue though is most retail investors/traders are far behind on the curve when it comes to thinking of risk. They watch tons of macro economics videos out there but many of these videos are unfortunately sensationalized and don't give a sense of proper portfolio/investment setup.
The reason I am saying this is because this thread seems to be upvoting needless speculation on INR exchange rate. There is no answer on how to deal with it. It is amazing to me. And _smartalec_ while well intentioned also gets side tracked. Because the answer always is - unless you are currency speculator future INR price is immaterial. The issue is the risk posed by rising INR. That's all.
So, let me try to tackle your question.
Your portfolio needs to built with all kind of risks in mind - rising and falling inflation, rising and falling growth. Things shouldn't be an afterthought. There are simple portfolio methods which will help you cover these risks. One of them is Dalio's All Weather Portfolio. Look it up.
But I don't understand the risk you are outlining in your post. And to be honest it seems like an analysis paralysis situation and paints everything in broad strokes as bad.
If the risk is INR is falling against the USD then maybe buying US stocks is the answer. All things being equal the losses, if any, will be offset by increasing exchange rate. But you have an issue where even US is going to trash then maybe think about rolling USDINR as a hedge. If increasing inflation is a risk then buy inflation linked bonds.
Perosnally I am not doing anything has been made to take care of most scenarios.