Why Yields And The Dollar Will Likely Retreat

Summary

• The Fed's data dependency and recent inflation uptick suggest a slower easing path, but a December rate cut remains likely with over 60% probability.
• Trump's proposed policies, including potential tariffs and fiscal stimulus, could boost economic growth and stock prices, with S&P 500 targets at 6,200 for 2024 and 7,000 for 2025.
• Despite recent market pullbacks, high-quality stocks and AI-related companies like Nvidia are poised for substantial growth, driven by robust earnings and AI market expansion.
• The economy remains resilient with no significant recession threat, supported by potential tax cuts, deregulation, and other favorable policies enhancing future economic growth.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long a diversified portfolio with hedges.