Ed Siddell Sees 100bps in 2026 Rate Cuts, Metal & Nuclear Bull Cases

Economic Outlook - The economy is showing positive signs with significant increases in durable goods orders, particularly in primary and fabricated metals, machinery, and electronic equipment, indicating a bullish outlook [2][3] - CPI inflation numbers are reported at 2.4%, which is below expectations, further supporting the positive economic sentiment [4] Federal Reserve Insights - The Federal Reserve's recent actions, including injecting $16 billion into the economy, are seen as inflationary, but there is optimism regarding potential rate cuts under the new Fed chair, Walsh [7][10] - Expectations for rate cuts range from 75 to 125 basis points this year, with a probability of a 100 basis point cut being considered likely [10] Consumer Affordability - Lower interest rates are anticipated to improve consumer affordability, particularly in housing and small business sectors, which could lead to job creation and higher wages [12][13] Investment Opportunities - There is a strong belief in the potential for gold and silver prices to increase over the next 12 to 24 months, making them attractive investment options [14] - The energy sector, particularly nuclear energy, is viewed as a long-term investment opportunity due to current volatility and rising electricity costs [15] Market Volatility and Strategy - The market is experiencing significant volatility, driven by emotions such as profit-taking and fear of missing out (FOMO), which affects stock performance [18] - A well-balanced portfolio is recommended to mitigate the impact of market fluctuations on overall gains and losses [16] Risks to Monitor - Key risks include the strength of the US dollar and government debt levels, which could impact the value of precious metals in the near term [20][21]