Bloomberg Surveillance How Equities are Pricing in Trump Policies
Feb 6, 2025
In this discussion, Amy Wu Silverman, Head of Derivatives Strategy at RBC Capital Markets, shares insights on navigating market volatility amidst political shifts. David Rosenberg, Founder of Rosenberg Research, elucidates the bullish sentiment in equities while wondering about inflation risks and the Federal Reserve's ability to steer a soft landing. Wendy Schiller, a Brown University professor, analyzes the legal fallout of President Trump's actions and the impact of judicial challenges on market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Bull Market with Volatility Risks
- The current market appears bullish, but be wary of volatility potholes.
- Watch for changes in the rates-versus-equity volatility correlations.
Bond-Bullion Barbell Strategy
- A bond-bullion barbell strategy (combining treasuries and gold) has outperformed equities year-to-date.
- This offers a better risk-reward balance and portfolio stability.
Fed's New Inflation Focus
- The Fed's focus has shifted to the market-based core PC deflator.
- This indicator suggests they may remain on hold despite uncertainty around Trump's policies.