The inflation from August to December will continue to rise, and the U.S. economy faces a weak recovery combined with inflation shocks.
Based on the macroeconomic environment of 2024, this combination suggests that U.S. stocks will decline, and the Federal Reserve will suppress market expectations to 'clear' the stock market and return to reasonable valuations.
However, this year is different; a new variable has emerged—Bessent. He has become the 'supporting hand' and hopes for three interest rate cuts within the year.
From two interviews yesterday, Bessent openly 'guided' the Federal Reserve to cut rates by 150-175 basis points, 'guided' the Bank of Japan to raise rates, and 'guided' Wall Street on how to price the U.S. Treasury yield curve.
This has never happened in history; it's like one person is in charge of both fiscal and monetary policy, and not just in the U.S., but globally!
Since Bessent took office, it must be said that he has the strength to lead, although it doesn't conform to historical norms, the market must learn to accept it, just like the market went from underestimating the 'knowledge king' to now realizing that everything the 'knowledge king' said has been accomplished!
Based on the macroeconomic environment of 2024, this combination suggests that U.S. stocks will decline, and the Federal Reserve will suppress market expectations to 'clear' the stock market and return to reasonable valuations.
However, this year is different; a new variable has emerged—Bessent. He has become the 'supporting hand' and hopes for three interest rate cuts within the year.
From two interviews yesterday, Bessent openly 'guided' the Federal Reserve to cut rates by 150-175 basis points, 'guided' the Bank of Japan to raise rates, and 'guided' Wall Street on how to price the U.S. Treasury yield curve.
This has never happened in history; it's like one person is in charge of both fiscal and monetary policy, and not just in the U.S., but globally!
Since Bessent took office, it must be said that he has the strength to lead, although it doesn't conform to historical norms, the market must learn to accept it, just like the market went from underestimating the 'knowledge king' to now realizing that everything the 'knowledge king' said has been accomplished!
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