Jan. 3 at 2:15 AM
$SPY
Inflation 2.0 is coming.
Stagflation has been happening.
Only a few sectors are holding up this economy.
Debt. Debt. Debt.
Continue to accumulate oil/gas.
Oil loves inflation.
$XOP $XLE
Bonds will offer some protection when The Big Ugly hits.
The Fed’s balance sheet surged +
$24.4 billion in the week ending December 24th, posting the biggest jump since the March 2023 Banking Crisis.
This marks the 3rd-consecutive weekly increase for a total of +
$45.5 billion.
As a result, the Fed’s total assets are up to
$6.58 trillion, the highest since the end of October.
The Fed is projected to buy
$35-
$55 billion in Treasury bills each month in 2026.
That would make ~
$550 billion in total purchases this year, bringing the Fed’s balance sheet back above
$7.0 trillion, the highest since October 2024.
The Federal Reserve’s balance sheet is officially expanding again.
I will continue adding more bonds, energy and will maintain an overweight mining positions.
$SBSW $RIO
