Watching the Speculative Premium Unravel
I keep being asked how the macro algo could be pointing to seismic change. I guess my answer is simple.
As much as one doesn’t want to bring politics into the market equation, I do think that with the Biden/Harris Team probably sitting on a 99 % chance of winning, one has to look at what the major theme has been for the Trump regime. And that has been Speculation. With a shift to the Biden Real Growth initiative with an infrastructure buildout, both conventional and green, plus tax disincentives to speculative directed activities you get the picture.
Bottom-line, many of today’s hot investments with speculative P/E’s will pay a price as the real growth paradigm takes over.