Letting Growth Run HOT!
In this week’s stock market review, we will discuss what it means for investments when the Federal Reserve lets the economy run hot and what are the specific areas of the stock market that outperform and underperform when nominal growth runs above trend. We will also review the long-term bull case on energy and the three core reasons we are optimistic on the oil and gas sector over the short and long term.
- The Federal Reserve wants to let nominal growth run
- Nominal growth leads to steeper yield curves → good for banks and energy
- Energy is the next BIG trade
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