Research Summary
The article discusses the changing narratives of central banks and markets. The author notes that the scenario of a recession is being pushed back and inflation is surprising by its “stubbornness”. This creates non-linear effects, whereby monetary policy remains more restrictive for longer, becoming an increasing headwind for risk assets. The author also mentions that a resumption of the crypto bull market likely requires regulatory clarity in the US and proofs that core inflation is moving.
Actionable Insights
- Monitor Inflation Trends: The author notes that inflation is surprising by its “stubbornness”. Monitoring these trends can provide insights into the economic environment and its potential impact on various assets.
- Understand Monetary Policy Impacts: The author mentions that monetary policy remains more restrictive for longer, becoming an increasing headwind for risk assets. Understanding these impacts can help in making informed investment decisions.
- Track Regulatory Developments: A resumption of the crypto bull market likely requires regulatory clarity in the US. Tracking these developments can provide insights into the potential future direction of the crypto market.
