Fed Is Easing Policy Into A ‘Melt-Up’

Dancing Nearer to the Door

We remain ‘Risk On’, at least short-term, and we continue to expect the Global Liquidity Cycle, the main driver of risk assets, to  peak in late-2025. Yet, there are some serious roadblocks ahead. Risk exposure needs to be considered. In the words of Warren Buffet: ‘Enjoy the Party, but dance near the door!’

Our previous Substack (The Great Wall of Debt) featured one of the risks, the upcoming debt maturity wall, and a subsequent report will deal with China risks. Here we tackle the question of rising US inflation.