- As expected, broad equity assets have continued to melt up and will likely remain in this trend through year end, bolstered by a near guaranteed Fed rate cut coming this week.
- Further global liquidity injections may be inbound as the Bank of England and People’s Bank of China have possible cuts in store as well.
- No other data is of interest this week although a surprise out of the PCE could cast doubt on whether the Fed is done cutting. In the most likely scenario, Powell suggests a pause. This is logical especially considering the strong base effects from early 2024 should reduce the YoY inflation data in the first two quarters of 2025.
- Bitcoin has seen a lot of sell pressure around the 100k mark, but current structure suggests an breakout. December’s gains could reflect October’s more muted performance, where the prior month seemingly cannibalized expected seasonal appreciation.
