President Biden's decision to drop out of the 2024 presidential race serves as a reminder that, in the world of politics, things can change quickly. For...
President Biden's decision to drop out of the 2024 presidential race serves as a reminder that, in the world of politics, things can change quickly. For traders, it means you shouldn't back up the truck and go all in on trading potential White House winners and losers.
So if everyone in the world wants to buy the magnificent seven here in the US, even if we have a big current account deficit, which is a negative for the dollar, if all that capital is coming into the US to buy our stocks and maybe foreign direct investment to fund our green energy transition, the dollar goes up.So you have to understand macro, you have to understand micro, you have to understand how the different asset classes are doing.
It's, I mean, we can talk about the pullback in the tech sector or whatever you want to get into today. So to me, that's the risk if the shine wears off some of these tech stocks, even for a period, even if there's lots of other great companies with good earnings and momentum and better valuations, you could see the entire market pull down.
But the valuation, the crowdedness of the trade creates a vulnerability and then when things are priced so positively looking out into the future, anything that disappoints that expectation could lead to some profit taking, which can feed on itself. Because historically, if you, you can, there's so much good data out there and there's lots of good research reports, you can go on chat GP T and find them timing those Pullbacks, timing when to get in and out is a fool's errand.So if something falls 10% and I think the fundamentals of that company sector country, what have you are attractive?Again, if my thesis is intact I'm going to add more.
You know, this week is such an important week with so many of the magnificent seven so to speak reporting.So we'll have a lot of that news behind us, whether they have solid guidance this week or not. There is an argument to broaden out your holdings beyond tech whether you're looking at an industrial company, maybe it makes some of the brick and mortars for a I so to speak, the picks and shovels, maybe it's an industrial company that's going to benefit from some of the government subsidies flowing through to the economy for chips manufacturing or for the energy transition.
Well, right, for investors, you have to put all the possible policy changes in aggregate and then in context of non political factors. I had a really cool conversation with Procter and Gamble, Ceo John Mueller and I asked him have the tax cuts from the past three years impacted your business and he says, absolutely.And if you go back and look at their profits over the past few years, P and G has done well.He says we will probably invest less in the U si mean, strip away all the election theatrics is what happens on tax is probably the single most, I guess contributor to what could happen to stocks in 2025.
And um and have written quite a lot of research on private cryptocurrencies and central bank digital currencies or government cryptocurrencies if you will.If you will for speculative investors, I think the hype around them being embraced by longer term institutional investors is premature. I know Blackrock has ETF S other firms have ETF S. To me that does not mean it's a mainstream asset yet.So, you know, for most of my career when I go into meetings I'm often the only, or one of the only women at the, and I think that's true for a lot of industries.
Rebecca Patterson Bridgewater Associates Foreign Exchange Markets
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
7 top takeaways Trump’s RNC speech: Opening Bid special reportFormer President Trump was fired up as he addressed the Republican National Convention and formally accepted his party's presidential nomination. From...
Read more »
Kamala Harris makes a pre-taped appearance on RuPaul’s Drag Race All Stars, urging Americans to voteThe Vice President’s appearance was taped before President Joe Biden dropped his re-election bid
Read more »
How Biden, Trump policies may impact the economy: Opening BidFedWatch Advisors founder and Chief Investment Officer Ben Emmons joins Yahoo Finance Executive Editor Brian Sozzi on the latest episode of Opening Bid to...
Read more »
U.S. President Joe Biden steps aside as Democratic candidate, ending re-election bidWASHINGTON, D. C. — U.S.
Read more »
U.S. President Joe Biden steps aside as Democratic candidate, ending re-election bidBiden says it has been his greatest honour to serve but he believes it is in the best interest of his party to stand down and focus solely on fulfilling his duties as president for the rest of his term.
Read more »
U.S. President Joe Biden steps aside as Democratic candidate, ending re-election bidBiden says it has been his greatest honour to serve but he believes it is in the best interest of his party to stand down and focus solely on fulfilling his duties as president for the rest of his term.
Read more »