Weiss President and CIO, Jordi Visser, regularly produces videos that provide a real-time interpretation of the market's most critical developments.
With a nod to the Rolling Stones and inflation in America being sticky, the latest installment of Real-Time with Jordi Visser covers what Jordi deems to be the number one story that investors should be positioning for: an environment following peak-bottlenecks.
Jordi begins by looking at abating freight rates, supplier delivery times, and energy prices as evidence that bottlenecks are easing. With respect to energy prices, we witnessed a synchronized run-up between August and the peaks in October, only to see drops offs across the board in November. The implications of these collective inputs are that we should see less pressure on global inflation.
With respect to inflation, Jordi believes that America is unique in that there was a persistent, pervasive, and pronounced labor shortage leading up to Covid, and it’s only gotten worse since. In this vein, even if there is less energy-related pressure on CPI, Jordi believes that America’s inflation prints will remain sticky and slightly elevated. This will be represented by continued bargaining power for job seekers.
Finally, Jordi touches on bitcoin’s increasing prominence. Referring to a prior paper he authored that was an early call for Bitcoin to reach a $1tn market cap, it now sits above that threshold, and with the total market cap of all coins exceeding $3tn. Jordi believes Bitcoin will become a major theme for currencies and the broader investment community.