David Bowers in discussion with CNBC

‘Biggest issue for the next 12 months is what happens to inflation,’ says strategist

David Bowers, Absolute Strategy's Chairman and Co-founder, discusses ASR's Asset Allocation Survey 2024Q4 and explores the interesting question: if the Trump 2.0 administration sees then confluence of politics and business, then where will capital be treated best over the next 12 months and beyond?

• Increased optimism about the overall economic outlook - the AA Survey's Composite Optimism Index rose to 60% in Q4 from 55% in Q3
  

• Earnings cycles in the US will likely start to broaden away from big tech into medium and smaller sized companies as tariffs may protect smaller, domestic US businesses
  

• Appetite for US risk assets increasing - be that the $, US credit, US equities or US small cap
  

• Fed cuts and the direction of US core inflation over the next 12-18 months in the midst of tariff threats, labour deportation and increased economic stimulus