Tanking The Economy To Force A Fed Pivot Is The “Most Stupid” Policy | Saxo Bank CIO

`

2022

was a bruising year for investors.

Will 2023 offer relief? Or will the beatings continue?

For insight into important investing questions like these, extra weight should be placed on the answers from those who are actually putting capital at risk.

So today, we welcome Steen Jacobsen back to the program. Steen is the Chief Economist and Chief Investment Officer of Saxo Bank, which manages billions in client assets.

When we spoke with him last a year ago, he predicted the Fed switch to hiking & tightening would catch the markets by surprise. Boy, was he proven correct.

The Secret To Surviving 2022 That Every Investor Should Know | Saxo Bank CIO

`

In Part 1 of this interview, Saxo Bank Chief Investment Office Steen Jakobsen explained why Fed Chair Jerome Powell announced this week that — to fight the inflation it has played a central role in creating — the Federal Reserve will accelerate its tapering program and likely hike interest rates three times in 2022.

Because the Fed will suddenly now pursue a more hawkish course than the markets have been accustomed to for the past decade, Steen

predicts 2022 will be a much more volatile year for stocks, bonds & other financial assets than investors are used to.

Here in Part 2, Steen reveals that “diversification” will the be secret to surviving the market turmoil that is likely to ensue.

He then generously breaks down how his portfolio at Saxo is allocated for the road ahead in 2022:

  • 35% Equities
  • 13% Bonds/Fixed Income
  • 10% Commodities
  • 10% Gold
  • 7% Crypto
  • 5% Volatility
  • 20% Real Estate

War On Inflation! New Fed Policy To Upend Everything Investors Know Predicts Saxo Bank CIO

`

The Federal Reserve is finally declaring war on inflation.

Yesterday, Fed Chair Jerome Powell announced that — to fight the inflation it has played a central role in creating — the Federal Reserve will accelerate its tapering program and likely hike interest rates three times in 2022.

That’s a 180-degree reversal of the Fed’s rampant bubble-blowing policies over the past decade.

This will have HUGE repercussions for the financial markets.

Because the key drivers of asset

prices over the past decade — $trillions in stimulus, buybacks funded by dirt-cheap debt, low inflation — are all coming to an end.

Which is why Steen Jakobsen, manager of $billions in client assets at Saxo Bank, predicts 2022 will be a much more volatile year than investors are used to.

And we should listen to him. One year ago on this program he boldly predicted we’d see a surge in both inflation and commodity prices in 2021 — and boy, was he ever right.

In this new interview, Steen shares his macro outlook and top predictions for 2022 (spoiler alert: he expects inflation to run even hotter next year…)