If the Fed cannot cut rates as much as people expect due to persistent inflation and a relatively stable job market, we could see a bear steepener.
Since valuations have never been a good predictor of short-term price changes, they tell investors very little about what might happen next year.
Global monetary policies diverge sharply, with the U.S. Fed navigating inflation and labor markets while other central banks cautiously extend their rate-cutting cycles.
The effects of recent shocks in global macro policy and politics seem to have simmered down only to reverse.
