Dear Investors,

A big event is starting today, and we will closely watch the situation there, especially Jerome Powell’s speech tomorrow.

Let’s explore what is happening and why.

In This Letter

• All eyes on Jackson Hole

  • What is it, and why should I care?

  • The caveat.

• BlackRock’s ETHA Crossed $1 Billion.

• My Thoughts

All eyes on Jackson Hole

Inflation, interest rates, and the FED…

A never-ending story we keep hearing from all sides for the last 12 months.

Today starts the Jackson Hole Economic Symposium.

What is it, and why should I care?

The Jackson Hole Economic Symposium is an exclusive annual event organized by the Federal Reserve Bank of Kansas City that gathers central bankers, finance ministers, academics, and market experts from around the world (learn more).

The reason why investors care about it is because major policy announcements, especially from the U.S. Federal Reserve, are often made there.

Markets will be closely monitoring any signs of economic support, especially in the form of rate cuts, and talks around inflation and recession.

The caveat.

Markets anticipate rate cuts — so much so that 69.5% expect a 25 bps rate cut, and 30.5% expect an even bigger 50 bps rate cut*.

This means that if the FED signals rate cuts, markets will react positively, taking it as good news.

However, if the FED remains neutral or negative, the markets will take it as very bad news, which can lead to significant sell-offs —> both traditional stocks and crypto especially.

We should know more on Friday at 2 pm UTC time during the Fed Chair’s Jerome Powell speech.

Do you expect good news or bad news from the Symposium?

BlackRock’s ETHA Crossed $1 Billion.