Bank of America survey: After Trump's victory, U.S. stocks are expected to be the best assets in 2025!
① A Bank of America survey shows that fund managers expect that us stocks will become the best performing assets next year, driven by the business-friendly policies of the Trump administration; ② They also expect that the small cap index Russell 2000 will perform the best next year, as its lack of international exposure minimizes the risk of increased overall import tariffs.
Is it stable? The probability of the Federal Reserve lowering interest rates next month has reached 80%.
① Last night, the completely market-expected usa October CPI data did not cause much of a stir in the market; ② However, the data performance still boosted market confidence in the Fed's interest rate cut next month, and stimulated a rebound in short-term US government bonds.
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Producer Inflation Data May Have Picked Up in October
Is the continued interest rate cut stable in December? Federal Reserve officials say inflation is moving in the right direction.
Minneapolis Federal Reserve President Kashkari expressed confidence in the direction of inflation shortly after the CPI was announced, saying that it is moving in the right direction and that more time is needed to analyze the data. Dallas Federal Reserve President Logan stated that more rate cuts are likely in the future, but it is best to proceed with caution due to the risks of inflation caused by demand and geopolitical factors. It is said that she prefers to slow down rate cuts sooner rather than later. St. Louis Federal Reserve President Mester mentioned that if inflation continues to decline, rate cuts should be gradual, and monetary policy should remain "slightly restrictive." Kansas City Federal Reserve President Schmid stated that it is uncertain how much rate cuts will be needed in the future.
Here's the Breakdown for October CPI, in One Chart
