Manic Monday - New Paradigm

As I theorized yesterday, the markets reacted strongly to the Bessent nomination, in particular by buying bonds, selling gold and the dollar. I think this is a massive fade, but this is a holiday shortened week with very little data, so it may take time. I am saving my bullets for next week.

Some additional details on Bessent.

Earlier in the year, he wrote a note about Bidenomics failures The Fallacy of Bidenomics: A Return to Central Planning. He also was interviewed last night by the WSJ Scott Bessent Sees a Coming ‘Global Economic Reordering.’ He Wants to Be Part of It. Some snippets:

So he thinks the way to reduce the heavy debt load is by boosting growth, not austerity, and he supports Trump’s tax cut agenda. So should we allocate capital based on a campaign slogan of 3-3-3 that has no actual details or plan, or the actual Trump policies that he is clearly supporting that are focused on boosting growth? The latter. Mind you, if a concrete plan for austerity is presented, I will analyze it with an open mind. However, I am not optimistic about that and wish them good luck.