Yes. And that may be more bullish than it sounds.
The July PCE Report and revised Q2 GDP data confirmed that bubble risk remains high.
So, should investors be worried?
Not necessarily. A Productivity Boom perpetuating a Jobless Recovery in a Resilient U.S. Economy amid Paradigm C, or “Run It Hot,” represents one of the most bullish growth backdrops of all time.
However, the backdrop could get even more bullish.
If Treasury Secretary Bessent’s recent efforts buy markets enough time for the Fed to eventually step in and suppress long-term interest rates, it could mark the “official” beginning of 42 Macro’s Paradigm D, or “Default via Debasement.”
The problem for investors is knowing how long to ride the bubble.
This is why we built KISS and Dr. Mo.
KISS provides a disciplined portfolio that adjusts risk as macro conditions evolve. Dr. Mo helps investors identify where and when to take calculated risk.
Don’t try to predict bubble pops. Use a disciplined process for staying on the right side of market risk while markets inflate.
42 MACRO RESEARCH SOLUTIONS
— Team 42
