The Next Fed Chair Could Reshuffle This Entire MarketWill quality and value finally make a return...
Editor’s note: I’ll be live this morning at 8:45 ET if you’re interested… Good morning: It appears that I scared a few people with my commentary yesterday on Blackrock… Well, I’m just trying to stay ahead of the curve on all this. The reality is that every time these guys say that they’re doing God’s work, they end up with more control, power, and money. It’s just a pattern… and I’m not trying to engage in righteous indignation… I’m just trying to point a camera at the world and show you what’s happening… how the pipes work… and how they all think… Outlook 2026I am just starting my outlook for 2026… it’ll arrive the final week. You’ll also receive a list of equities that fit the Quality and Momentum metrics that we’re looking for as we start the year. I have been assessing the possibility of Hassett as the next Federal Reserve Chairman, and I’m confident that the central bank will focus on capital formation, which means that equities might have to do something horrifying… Rely on fundamentals. There’s chatter about putting guardrails on shadow banking, which could impact all of those leveraged hedge funds that have distorted these markets for over a decade… But nothing is promised… and the Empire always strikes back. We will take it as it comes… My recommendations remain the same - follow momentum readings… use momentum as a tool when combined with Quality and Value… and don’t chase unprofitable companies - especially if they are riddled with debt (an issue that I saw today when looking at insider buys…) In addition, we’ll have to start looking at corporate debt markets as we push toward a period that could be very aggressive for rate cuts (finally) in 2026… and I’d rather be lending to some of these Too Big to Fail corporate giants than to the Treasury… But that’s just me… Duration will become a preferred trade within the next 12 to 18 months… It’s a timing thing… but we’re starting to face new pressures that will be hard to fix with just monetary policy… I’ll report back on this… Continue reading this post for free in the Substack app
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