Bloomberg Surveillance The Fed Weighs Tariffs & Taxes
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Dec 16, 2024 Rebecca Patterson, former Chief Investment Strategist at Bridgewater, shares her insights on the softening Chinese economy and the Fed's expected rate reductions. Henrietta Treyz of Veda Partners discusses governmental funding and the political landscape affecting tariffs and taxes. The two delve into U.S. economic predictions, contrasting views on the dollar's strength, and the connections between politics and agriculture, all while sprinkling in lighthearted anecdotes about avocados. Their dynamic conversation reveals the intricate interplay of global markets and local economies.
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Strong Dollar Forecast
- Rebecca Patterson believes the dollar will be stronger than consensus predicts in 2025.
- Factors include interest rate divergence, stronger U.S. growth, and potential tariffs.
U.S. Equity Market Valuation
- U.S. equity markets are expensive and heavily owned by foreign investors.
- Valuations alone aren't enough for market correction; a catalyst is needed.
Hedging Against Policy Uncertainty
- Consider various scenarios when investing, as policy changes under President-elect Trump are uncertain.
- Hedge portfolios with defensive positions like energy, healthcare, utilities, and some overseas investments.