The Monthly Review: December

The December 2024 monthly report by Frame Asset Management, edited by Michele De Michelis, examines the impact of Trump's second-term inauguration on the global economy. U.S. stock markets show volatility, with the main index fluctuating between 5,800 and 6,100 points, while bond markets push 10-year Treasury yields close to 5%. The dollar strengthens against the euro, highlighting the robustness of the U.S. economy. Key concerns include the high valuations of the S&P 500, trading at elevated multiples, and the risks of inflationary policies. The current situation is compared to the "Nifty Fifty" era of the 1970s, emphasizing the dangers of market overvaluation.