Allocation Change Now
The rumors are about to play out.
Recent Posts
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Bessent’s Gambit Part Two
It’s all pro-Bubble, which at this extraordinary juncture equates to pro-“Terminal Phase Excess”. Bessent has significantly raised the stakes. This seemingly ensures the Fed’s balance sheet will be called into action, as the market challenges the Treasury’s control over market yields and currency stability. And this dynamic helps explain the week’s surge in precious metals and commodities prices.
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Bessent’s Gambit
Markets have succumbed to a precariously dysfunctional phase. There’s no turning back. For too long it has paid to ignore risk, buy every pullback, and lever up for big returns. Broken markets have proven incapable of orderly adjustment/correction. At this point, risk management is for suckers. Hedging only hurts performance. And from a macro perspective, derivative hedges and short positions create highly flammable fuel for squeezes, panic buying, and FOMO speculation.