Market On Open, Sunday 11 January

DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Read our full disclaimer, here.

Liquidists To The Left Of Me, Money Printers To The Right

by Alex King, CEO, Cestrian Capital Research, Inc

I think it’s fair to say that the world is in a little trouble right now. We have all lived through more peaceful times than this. The question here in this note is simply, what will markets make of the current turmoil? My guess is that markets anticipate further economic stimulus in the US, by way of reduced rates, reduced bank capital requirements, increased credit availability, and growth-focused fiscal policy. And I think that equity markets will treat this as bullish for stocks; I also think that so far the bond market is not of the view that inflation is coming back to town anytime soon. Whether that be due to the lower rate of job creation or the medium/long term deflationary impact of AI, I do not know. I do know that yields continue to trend down whilst equities and crypto continue to trend up, and as for commodities, well, it seems like the market is sending metals to the moon rather than mining them there and bringing them back down.

Let’s get to work - there’s a lot to cover.