In today’s briefing:
- This Will Not End Well, But When?
- Will the Next Fed Chair Matter That Much to Policy?
This Will Not End Well, But When?
- The U.S. stock market is undergoing a frothy advance. The intermediate trend is bullish but some technical warnings are appearing.
- We can’t predict the exact nature or timing of a possible market disruption.
- Investors may find it prudent to opportunistically take advantage of the relatively low implied volatility environment to buy cheap downside protection.
Will the Next Fed Chair Matter That Much to Policy?
- Regardless of who the next Chair will be, the Fed will be faced with a regime characterized by high fiscal deficits and pressure for the Fed to help finance.
- In all likelihood, the Fed will follow the path of the BoJ of cutting short rates, restarting quantitative easing and yield curve control to suppress long rates.
- Against this backdrop of fiscal dominance, investors need to re-examine their investment objectives and policies under the new regime.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries