Weekly Update #9: Dec. 17 2023

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WHAT YOU NEED TO KNOW ABOUT MARKETS THIS WEEK

This week the Fed pivoted and gave its ok to easing financial conditions. Powell made an unexpected 180º pivot on what he said two weeks earlier. What a difference two weeks can make...

The economy is still hot but perhaps the Fed has bigger things to worry about than bringing inflation sustainably back to its 2% target... or perhaps there were some phone calls from the White House after seeing the most recent polling data placing Biden well behind Trump.

Anyhow, the FOMC's "pivot" toward dovishness had a significant impact on the markets: US 10y yield plunged nearly 30bps. Markets are now pricing for six cuts of 25bp in 2024. Logically the US dollar accentuated its downtrend.

PORTFOLIO UPDATE

Model calls continue to be spot on:

Overall, the momentum remains up, and the path of least resistance is higher

While crypto saw a consolidation week, equities ripped higher and oil confirmed it is going nowhere for the moment.

Coming to portfolio positions. The model picks continue to perform well. We started the portfolio with $10,000 a couple of months ago, and the net asset value is up 54%!

THE MOST INTERESTING THING WE CAME ACROSS

This week we bring you A good piece on the current state of AI and its future.

LISTEN OF THE WEEK: A recent video by David Webb sheds new light on what happened during the Great Depression.

That’s it from us this week, thanks for reading!

DISCLAIMER: The No Rainy-Day Portfolio is not registered with any financial regulatory agencies. Content is for research, education, and entertainment purposes and should NOT be considered personalized financial advice.