The most anticipated event of this month just ended and the Fed Chairman had changed strategy on the inflation fight. Employment numbers were healthy, consumer prices looked to be steadying, supply chains had normalized and a recession possibility was banished. In response, the stock market went into immediate front loading, anticipating juicy interest rate cuts in the coming year. Looks like the skies are clear, or is it not? I thought it was very clever positioning by the Fed. They needed to bring cheer to the people not just because Christmas is coming but also kept in mind there were other major events happening next year. Several presidential elections will happen (US, Indonesia, Taiwan) and big money is required to finance projects for supporting a couple of small wars, build massive infrastructure, invest into technology and pull ahead of a competitor who's gotten too close for comfort. All these are dependent on people's support but the key is whether the US can generate more income than expenditure. My take is, inflation is here to stay!
My investment window has sort of closed for the year. I'm preparing to join the SCB Priority Banking program so as to gain access to other products and get preferential rates. I'm still contemplating whether to apply for Jan SSB. The more exciting part would be to tabulate my overall portfolio status at the end of the month.
Tip: Baron Gaston Legrand Armagnac, dried fig infused toffee, almost like an alcoholic tea
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