According to @KobeissiLetter, continued rate cuts amid stagflation are fueling nominal appreciation across asset classes, making asset ownership the primary hedge against a widening wealth gap; source: @KobeissiLetter. For trading, this stance favors staying allocated to broad assets rather than idle cash and monitoring policy easing signals and inflation data to gauge the strength of the nominal upswing; source: @KobeissiLetter. Crypto participants track the same liquidity regime because correlations between crypto and equities increased notably after 2020, linking digital asset performance more closely to monetary conditions; source: International Monetary Fund (2022).

According to @KobeissiLetter, the Federal Reserve is set to cut interest rates even as inflation rebounds, a setup the stock market will favor with a risk-on response. According to @KobeissiLetter, wage growth will lag inflation in this environment, meaning asset owners are positioned to benefit while non-owners face eroding real incomes. According to @KobeissiLetter, the result mirrors the post-pandemic dynamic where the wealth gap expands as asset prices rise faster than wages.