Long assets that perform well in a steepening yield curve environment and stay away from ones that don’t. Cyclical and industrial commodities, energy and financials benefit here, whereas long duration, speculative assets and technology should lag. This approach happens to dovetail nicely with the main street reignition idea as well. Stimulus to the... See more

Given I believe both fiscal and monetary policy in 2026 will be focused on supporting main street and many other places besides tech, in addition to what I believe is a concentration problem, it’s not an area I am excited to invest in.

The steeper yield curve is also being reinforced by a policy change the Fed began late last year that I still don’t think is getting enough attention. While their policy is supportive of the front end via Fed Funds rate cuts and the newly announced Reserve Management Purchases (RMP), it is doubly bad for the long end. First, that front-end... See more

The last point to mention that’s separate but related to all of this is the US dollar which I expect to see another 5-10% decline in 2026. Liberation Day set in motion what was already a slowly melting ice cube of capital flows into the US peaking out.

The Trump admin has a choice in 2026 - stimulate Main Street to win the election or keep a lid on bond yields. The former will take priority and the latter will be chased like a dog on a leash.