Monday, October 24, 2016

Markets will rally regardless Trump or Clinton wins


We are in a very mature cycle. I think the Fed has limited tool-kits, but it has more in a toolkit than other central banks, which is why betting against the Fed at-least in the short term is probably risky because there is some flexibility there. 

You may want to sit more passively and buy the dip for the rally into year end. I think we will have a rally post elections irrespective of who wins. I think the real hard work begins next year. 

Limited or No Rate Hikes ahead

There is no hiking cycle of any meaningful degree ahead of us. The Fed can cut rates. Not many other central banks can credibly cut rates. The Fed I think can if we can get over this little obsession with inflation we've got right now which I don't think will last very long,