Threat to Fed Independence is Un-Anchoring Inflation Expectations | Jens Nordvig

Bullish:

• $YIELDCURVESTEEPENER - Jens expects the yield curve steepening trend to continue, citing multiple supporting factors.

  • “I think a lot of people are looking at steepening trends in the yield curve, and I think there's a lot of good reasons for those to to continue to play out.”

    Jens·45:00
• $GOLD - Central banks are increasing their gold reserves as a hedge against currency risks, potentially supporting gold prices.

  • “A lot of central banks have been trying to increase their gold share, both from from, like, letting the valuation effect play out, not selling on the way up, but also adding to flow.”

    Jens·26:06
• $EUR - European governments are starting to promote the euro as an alternative reserve currency, potentially strengthening its position.

  • “The Europeans, which have never really endorsed the euro in an active way as a reserve asset, have actually started to do that more.”

    Jens·56:48
• $AITECH - There's significant enthusiasm for AI technology investments, with strong capital expenditure trends and frequent positive anecdotes.

  • “But at the same time, we have an AI effect that's amazing. Right? We have an incredible CapEx, push. We're seeing anecdotes, every week.”

    Jens·52:16

Bearish:

• $USD - The US dollar is expected to have a downside skew in the medium term, based on global asset allocation trends and potential Fed policy changes.

  • “I think from a trend basis, the dollar, still in a medium term sense, looks like we have downside skew.”

    Jens·36:22