Episode Details
| Title | Why The Fed Rate Cuts Were A Mistake | Michael Kao |
|---|---|
| Date | 11/25/2024 |
| Podcast | Forward Guidance ↗ |
Key Insights
Bullish:
- 🟢 $DXY - Michael believes the US Dollar Index (DXY) will strengthen due to the US economy's relative strength and the combined impact of a strong dollar and high oil prices on global markets, especially emerging economies.
- “You see DXY breaching 107 today. Like, one thing I've been saying is that I think, you know, this this twin wrecking ball of a strong dollar and still relatively high oil prices, even though oil prices have come down from the highs, $20 from from, you know, the 70 to dollar 70 to $90 range.” - Michael (13:46)
- “I increased my USD CNH, position when it when it dropped to, like, 699, because I said that, look. The fact that Powell cut so aggressively didn't change the fact that the US economy is still the strongest in the world.” - Michael (12:47)
Bearish:
- 🔻 $USDCNH - 🔒
- 🔻 $EM - 🔒
- 🔻 $TLT - 🔒
- 🔻 $CHINA - 🔒