When the bad news is all out, it’s good news】The policy and geopolitical bottoms are converging, and a major rally is brewing!
Folks, although recent market volatility has been held back by geopolitics and oil prices, don’t let short-term swings cloud your judgment. The stage is set for a rebound:
Major policy moves are establishing a “supply floor”: The U.S. has begun invoking the Defense Production Act to force the way for expanded oil production and refining capacity. This effectively puts a cap on oil prices and inflation over the medium to long term. With inflation risks contained, there will be far less resistance to a shift in monetary policy.
History doesn’t lie: The selling pressure and flight to safety ahead of midterm elections are just a “golden pit” created by institutional investors getting out early. Historically, once post-election uncertainty is resolved, risk assets have a high probability of staging a meaningful rebound.
Folks, although recent market volatility has been held back by geopolitics and oil prices, don’t let short-term swings cloud your judgment. The stage is set for a rebound:
Major policy moves are establishing a “supply floor”: The U.S. has begun invoking the Defense Production Act to force the way for expanded oil production and refining capacity. This effectively puts a cap on oil prices and inflation over the medium to long term. With inflation risks contained, there will be far less resistance to a shift in monetary policy.
History doesn’t lie: The selling pressure and flight to safety ahead of midterm elections are just a “golden pit” created by institutional investors getting out early. Historically, once post-election uncertainty is resolved, risk assets have a high probability of staging a meaningful rebound.