Real Vision: Finance & Investing Macro Mondays: Markets Are Screaming for Liquidity
Nov 25, 2024
Discover the explosive rise of meme coins and their quirky characters, including 'Fartcoin,' amid a backdrop of risk-taking in broader markets. The hosts investigate geopolitical shifts, like the new peace agreement affecting financial dynamics, and explore potential currency trends between the euro and the dollar. They also analyze Germany's industrial revival strategies post-COVID-19 and China's growth focus, shedding light on how these factors intertwine with macro markets and trading opportunities.
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Bitcoin and Liquidity
- Bitcoin's price action suggests that the market anticipates the Federal Reserve adjusting its balance sheet.
- This is because markets are "screaming for liquidity," as evidenced by bond market behavior.
US Growth and Fed Policy
- The US economy, after a soft patch, reaccelerated following the Fed's rate cut but shows signs of slowing again.
- This slowdown might prompt the Fed to adjust its balance sheet and cut rates, potentially impacting bonds and risk assets.
Bond and Risk Asset Outlook
- Consider investing in US Treasuries due to their potential for decent returns until the New Year.
- If you have a higher risk tolerance, the Nasdaq and crypto might offer more significant returns, though with greater uncertainty.