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trump administration's rapid policy shifts impact us economy and markets

Daniel Morris, Chief Market Strategist at BNP Paribas, notes that the Trump administration's aggressive approach has surprised many, leading to expectations of significant US economic growth but increased market volatility. While the impact of tariffs remains uncertain, he believes the Federal Reserve will maintain its independence. Morris also highlights the positive outlook for European equities despite political turbulence, emphasizing the need for structural reforms in response to US deregulation pressures. Gold remains a favored asset in their portfolios as a hedge against economic risks.

investors show record high allocation to us stocks amid bullish sentiment

Investors are increasingly bullish on US stocks, with a record 36% of respondents in Bank of America's December survey indicating an overweight position in equities, the highest in the survey's history. This shift coincides with a drop in cash allocation to 3.9% and a growing belief that the global economy will avoid a recession in 2025. Despite signs of persistent inflation, 33% of investors anticipate a "no landing" scenario, where growth remains strong without a significant decline in inflation.
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