High interest rates may have a long-term impact on various markets🧐
During the quarter, with economic data better than expected, interest rate traders have shifted from worries about a recession to worries about structurally high rates. We also believe that a non-recession/high interest rates will have a negative impact on USD strength, pressure on share price multiples, and gold and crypto. Currency price resistance has long-term implications; furthermore, most central banks around the world are nearing the end of their rate hike cycles, and interestingly, the US interest rate curve reflects The rate cut in 2024 is the fastest, which seems unreasonable. We still believe that the U.S. interest rate cut next year may not be as good as the market expects, and investors will be disappointed.
