Bob Elliott
· Nonconsensus
· February 02, 2026 at 11:42
· ⏱ 4 min read
| Read on Substack ↗
Summary
=== SUMMARY ===
•The market is underpricing the probability of a dovish, "Easy Street" policy from the new Fed Chair, who is viewed as politically beholden to the President and likely to stimulate the economy ahead of the midterm elections.
•While hard assets like metals have already experienced a "blow off top" and seem to have priced in this theme, other pro-growth financial assets—specifically equities, the steepness of the yield curve, and the US dollar—have not, presenting a clear opportunity.
Summary
The author argues that the market is underpricing the combination of continued easy monetary policy and solid growth outcomes. This mispricing is seen as an opportunity across stocks, the yield curve, and the US dollar.
•The administration's affirmation of "Easy Street" policy is a key macro driver.
•Good growth outcomes combined with this policy are not fully priced into markets.
•The author sees stocks, the yield curve (YC), and the USD as looking underpriced.