Market Euphoria and Hidden Challenges: Navigating Post-Trump Rally

The Week That Will Go Down in the History Books

‍What a week.

We truly got what we wished for.

Donald Trump's recent presidential win has sent the entire market into euphoria.

That said, not everything is looking bright.

The recent increase in global liquidity has largely been driven by a strengthening collateral multiplier, which has provided temporary support to global financial conditions.

Meanwhile a slowdown in China's credit and liquidity availability, along with weaker than expected bank loans for October - point towards fundamental challenges.

Currently, there's no big underlying fundamental strength behind this rally in Bitcoin, and central banks are keeping a cautious position.

To top that off - inflation is set to pick up faster in '25, following Trump's win.

To sum it up: this current environment may lead to some unwanted obstacles.This, however, visibly isn't the time to be shying away from risk-on assets.

A similar situation occurred around the same time last year, where speculation drove the market and liquidity came in clutch later on.

With that said, we anticipate more liquidity inflows in Q4 so any dips until further notice, are dips for buying.Data-wise, GL has surged by 4.37% this week, lifting the AE GLI to $131.263 trillion (from last week's $125.764 trillion).

The 3-month RoC has indicated a slight reversal to the upside, solidifying the bullish trend.

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