Personally, I think we are in for a nice rally, if Trump shapes-up, the Chinese fall in-line, and the Fed pulls their heads out of their asses.
But I would re-allocate higher. Passive long-only equities are going to have a tough time from 2020-2025.
Vols are so jacked-up now it makes it tough to hedge indexes.
Hindsight is always 20-20. A lot of active strategies will start to make sense again. A good long/short manager, for instance. I always liked that model. Now that the shorts are starting to work and some value names are absolutely murdered, it makes sense to look there for 8-12% a year.
So I would say passive to active into a rally, from long-only into long-short.
Just my 2 cents.
That's like saying "i think we'll get a nice rally in a perfect world".
Chinese? They'll maybe buy us off but that's about it. They're run by a different engine than we are and biggest emotion on that engine is pride in themselves (misplaced or not is not the argument). IF we are committed to actually cordoning off the chinese that will not happen.
The fed? They're always late and are either corrupt or blind. "data dependent" my ***. Too many academics and frankly they're centered on inflation which has too many variables that they don't even pay attention to... housing prices? not in their inflation numbers. guess what the biggest inflationary item other than food is for the poor? guess which number has been out of control with low interest rates? Plus their answer to everything is more debt. Oh that's gonna work when our problem is (get this) TOO MUCH DEBT.
trump shaping up? If by that you mean removes tariffs i will point to my first paragraph on the chinese. I have my issues with him (oh so many) but the chinese PUBLICLY had their made in china 2025 initiative which bluntly was basically saying "we are the new superpower". Whether you agree with how he's doing it or not... he's all we got in office for 2 more years and someone has to deal with them so... how can he shape up? Where's the give on the other end for an actual deal that doesn't leave us as the 2nd superpower (aka the has-been who will be abused and ignored).
where's the REAL positives for a long-term rally? I'm not talking 6 months of decent up-move. i mean a real, sustainable rally.
this is a clustermess wrapped in a very bad situation wrapped in a vortex of debt bigger than 1929.
NO ONE could navigate this well. This market crash was staring people in the face if they just looked.