Moderately above 2 inflation, moderately is what it says in the statement but does not define exactly what moderately means. There are two centers to this action, Robert Kaplan wants to see the statement to the way it was pretty wants to statement to read the economy or stance will remain the same until the economy has weathered the storm and the economic storm we have here. Well cash on the other side dissented because he wants more dovish language in this. On implement rates, statistics are very interesting here. They have reduced now the planet rates rates and estimation of this year to 7. 6 by the end of 2020 grid that is down from 9. 3 from their june projection and then also 5. 5 from on a plummet rates in 2021, 4. 6 and 2022 and 4 in 2023. The real gdp prediction cut in half for the losses they are paired they are now saying its a loss of 3. 7 at the end of this year with a bounce back of 4 next year. The inflation, fed estimates that pce inflation is 1. 2 this year up from 1. 7
It is showing how much power these businesses have to move the index in one direction or another, outweighing technology. As we look at the valuations 2000, the big underperformer today, relative to the median forward valuation on the s p 500, the ratio looks ugly, we are back down to the lowest we have been. I dont know if that is the denominator of the s p 500 continuing to decline. It could be both of those. It has been a downward trajectory, and we have yet to see it. Calls forwe have got questions to be asked of our guests as well. You are a growth investor. There are queries from viewers whether this can be sustained. We have been talking about the heady heights and valuations. You think the nasdaq 100 may have hit a wall here, or can it pull higher . I think we can continue to go higher for no reason at all other than sentiment. As a fundamentally biased investors, you believe you need to have some cyclical rally that comes through for most of these sectors to come to fruition.
Not enough time. Announcer we believe this discussion and go live to President Trump. He is giving a speech in minnesota on the economy. Minnesota, but our great republican candidates for michelle . Wheres [cheering] i hear some any things about you. I have heard some great things you are going to do it. We are going to be out there working with you. Tyler . [applause] tyler, good luck, tyler. This is a great group. A man whose name i love lacey johnson. [cheering] great job. I have been following you, lacey. You are doing good. Thank you very much. Warriors, all of them. We have to get them in because we have to stop this craziness going on. Enforcement, they will lose the country. Somebody said the other day, and i sat strongly, sir, you are the only one between that and the american dream. We do not keep this position, we are going to win the house. I am very much involved in every single race. With the senate we are working hard. I think we will be in great shape in the senate. Did
Announcer President Trump innesota, a state he won 2016. He talks about recent protests in the state, the coronavirus response, and negotiations with Congressional Democrats about additional trade. And dyingin the air for thisen waiting moment all my life, oh lord coming in the air and dying oh lord i have been waiting for this moment all my life oh lord ladies and gentlemen, the 45th president of the United States, donald j. Trump. And im proud to be an american where at least i know i am free and i will not forget the men who died who gave that right to me and i will gladly stand up, to you, and remember still but there aint no doubt i love this land from the lakessa of minnesota to the hills of tennessee across the plains from sea to shining sea from detroit down to houston wherew york to l. A. , there is pride in every american heart, and it is time we stand and say that im proud to be an american where at least i know im free and i wont forget the men who died who gave that right
It did not shy away from staying there. The dollar continues to be weaker at 93. 20. A strong british sterling. 1. 3082. In euro also a little stronger. Crude oil at 42. 20. A rare glimpse into the Research Division at bridgewater. Our next guest overseas a team of over 150 at one of the largest hedge funds. We are in a new era of policy. Kareng us now is karnioltambour of bridgewater has 100 60which billion in institutional investments. World . Isn np3 karen as the world changes, investment need to change with it. Interest rates were the primary driver of fed cycles. The fed lowered and raised Interest Rates, and that was the most important thing to drive the economic cycle. Then we got to the financial crisis, and quantitative easing became the most important lever. But at the end of the day, you can print all you want but the Federal Reserve doesnt have the mandate to figure out who will get the money. A lot of money went to Financial Assets and not the real economy. Andworld is cha