Risk: How to Play China's Next QE

As predicted, China's starting to provide support to its economy. This won't be enough support. A Bazooka is coming in the months ahead.

Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000

Two major drivers of equities this morning… both forecasted within the last two weeks here at Republic Risk. When you have a worldview, and you stick to it… it becomes increasingly easier to have conviction about what comes next.

First, the Peoples Bank of China is now starting to take action to support its beleaguered economy. 

Second… and more important… the U.S. dollar is now down to its lowest levels since July 2023. Isn’t it hilarious that in August, CNBC was arguing that a weaker U.S. dollar could help the consumer. It’s almost like they knew something was on the horizon…

I’ve said repeatedly that something happened at the global policy level in the last few weeks.

There was a real need to carve into the dollar’s strength - especially given that China heavily relies on the dollar for global trade and cross-border capital flows.

A significant amount of China's international transactions, especially with countries…