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Cresco Capital CEO Andrey Syrchin shares his insights on the market reaction to the latest industrial inflation figures from the United States. With Trump Media’s stock dropping over 7%, Syrchin unpacks the economic trends and their broader implications for global markets.

What’s Happening?

The U.S. annual inflation rate hit 3.3%, 50% above the Federal Reserve’s target of 2%. The rise sparked speculation over the Fed’s next moves, particularly as former President Donald Trump hints at aggressive monetary stimulus. Trump even suggested replacing Jerome Powell if the Fed chair fails to align with his economic vision.

Breaking It Down:

Inflation Trends

• Autumn marked a shift from declining to rising inflation, with industrial price levels climbing faster than anticipated.
• The Federal Reserve has repeatedly cautioned against hastening rate cuts in this volatile environment.

Seasonal & Global Pricing Pressures

• Holiday spending often pushes prices higher.
• Global companies are raising prices on goods and services to offset rising costs in raw materials, transportation, and wages.

Labor Markets & Wage Growth

• Major economies, including the U.S., India, China, and Europe, report low unemployment rates.
• Rising wages are pushing businesses to adjust pricing upward, fueling inflation.

Market Implications

“The inflationary spiral isn’t slowing down,” Syrchin notes. “With elevated borrowing costs here to stay, the Fed might be forced to raise rates again this year.”

Additionally, the U.S. mortgage market is seeing a surge, with consumers rushing to lock in loans despite high interest rates. Investors and homebuyers are betting on continued property value increases, adding fuel to the fire.

Looking Ahead

Syrchin concludes, “We may see inflation persist alongside elevated interest rates. While a serious global slowdown could cool consumption, for now, markets remain on edge. As always, time will tell how these dynamics unfold.”

This analysis is presented by Andrey Syrchin, CEO of Cresco Capital.

As we navigate a complex and ever-changing global economic landscape, Cresco Capital presents its investment outlook and strategy for the next 12–24 months. Here’s how we see the market evolving and where we believe the key opportunities lie.

Global Economic Outlook

Our primary outlook is moderately optimistic. Despite the current high valuation of many asset classes, which have risen significantly since the lows of 2022, we see considerable potential for growth globally.

Key highlights:

1.Market volatility may increase, but we expect global economic growth to remain resilient through 2025–2026.

2. The U.S. Federal Reserve is likely to lower interest rates cautiously, with a projected decrease from 4.75% to 3.75% by the end of 2025.

3. Amid declining rates, diverse investment opportunities are emerging, particularly in bonds, equities, and alternative investments.

Key Investment Opportunities

U.S. Markets

• Small- and mid-cap companies as well as large corporations, particularly those integrating artificial intelligence, offer promising returns.
• Potential tax cuts and regulatory rollbacks under the Trump administration could significantly benefit these companies.

Chinese Market

• Investments in companies with strong domestic demand remain attractive, especially in light of recent unprecedented economic support measures from the Chinese government.

Healthcare Sector

• Sectors with high growth potential include:

1.Gene therapy and biotechnology, targeting rare diseases and personalized treatments.

2. Medical technologies, such as devices for remote patient monitoring.

3. Pharmaceuticals, focused on developing new drugs and vaccines.

Alternative Investments

• Real estate investment trusts (REITs) offer stability and diversification.
• Hedge funds present an effective option for returns amid market uncertainty, though careful due diligence is critical.
• Cryptocurrency projects: While volatile, certain projects – especially those potentially integrated into U.S. corporate ecosystems – may benefit from significant capital inflows under the Trump administration.

Potential Risks to Monitor

• Geopolitical Tensions: Trade disputes and other geopolitical issues could increase market volatility.
• Economic Overheating: Excessive capital spending could lead to inefficient resource allocation and inflation.
• Federal Reserve Policy: A slower pace of interest rate cuts could cool markets.
• Trump Administration Policies: Outcomes may differ significantly from pre-election rhetoric, introducing unpredictability.

It’s crucial to hedge both global and local risks through a well-diversified portfolio of financial instruments.

Model Portfolio for 2025–2026

Based on our analysis, we recommend the following allocation:

• Fixed Income Instruments: 40%
• U.S. Stocks (Leaders, Small- and Mid-Cap Companies): 30%
• Investments in China: 10%
• Real Estate (REITs): 10%
• Healthcare Sector: 7%
• Cryptocurrency Projects: 3%

This allocation is subject to adjustment based on evolving market conditions and economic shifts.

Looking Ahead

At Cresco Capital, we believe in staying proactive and adaptable. In a world of uncertainty, understanding emerging trends and maintaining a diversified approach are essential for long-term growth.

For more insights and detailed analysis, stay updated on our blog.

In an era where technological advancements often outpace their practical applications, Google has once again shattered expectations with its latest quantum computing milestone. The unveiling of a quantum computer powered by the new Willow chip, capable of performing tasks unimaginable for classical supercomputers, marks a significant breakthrough in the field.

A Quantum of Solace or the Birth of a New Era?

Google’s quantum computer, an engineering marvel backed by Alphabet Inc., tackled a benchmark problem in a mere five minutes—a task that the world’s fastest classical supercomputer, the Frontier, would need more than 10 septillion years to solve. This striking comparison not only highlights the sheer power of quantum computing but also showcases Google’s continued dominance in pushing the boundaries of what these machines can achieve.

Potential Capabilities and Challenges

Although the algorithm was designed to test the capabilities of the quantum computer and has no practical applications, its significance is undeniable, according to Hartmut Neven, founder of Google Quantum AI. “If you can’t win at least on one problem, you won’t win on a useful problem either,” Neven noted. Google plans to demonstrate a real-world use case next year that would be impossible for classical computers. “This is now within reach,” Neven added.

Governments, major tech companies, and venture capitalists worldwide have invested billions of dollars in quantum computing, lured by the promise of commercial and military superiority through computing speeds millions of times faster than classical computers.

Technological Limitations

Quantum computers operate by leveraging the behavior of subatomic particles, requiring environments that prevent these particles from interacting with their surroundings. This typically demands temperatures near absolute zero. Such limitations, combined with high error rates, have made it challenging to use quantum computing for practical and large-scale applications.
Quantum computers operate by leveraging the behavior of subatomic particles, requiring environments that prevent these particles from interacting with their surroundings. This typically demands temperatures near absolute zero. Such limitations, combined with high error rates, have made it challenging to use quantum computing for practical and large-scale applications.

The Willow chip reduces error rates, according to a study published in the scientific journal Nature. This breakthrough makes it possible to build larger quantum computers, and Google is now evaluating the costs of scaling the technology, Neven explained.

Competition in Quantum Technologies

Various approaches are competing to dominate the quantum computing field. Google’s technology is based on superconducting qubits, which are also used by competitors such as IBM and Amazon. The Willow chips are manufactured with tools similar to those used for conventional microchips. Meanwhile, Google recently invested in QuEra Computing Inc., a company employing “neutral atom qubits.”

“When we decide to scale up, we want to be absolutely certain that we’re scaling the most promising technology. Our money right now is on superconducting qubits,” Neven stated. However, he also acknowledged that neutral atom qubits could have their own advantages, and the company is exploring their potential.

Why It Matters for Investors:

Quantum computing is no longer a distant dream, and Google’s advancements highlight its revolutionary potential. While the technology is still far from mainstream adoption, its capabilities could transform industries ranging from finance and healthcare to artificial intelligence and cybersecurity.

Stay updated on technological advancements and emerging investment opportunities by visiting Cresco Capital’s blog or connecting with us on social media. 

#CrescoCapital #QuantumComputing #GoogleAI #WillowChip #EmergingMarkets #InvestmentOpportunities

As we step into 2025, navigating the financial landscape could become increasingly complex due to a new presidential term and notable economic indicators. Here’s what you need to mark on your calendar to stay financially organized:

January: Student Loan Payments and Credit Scores

With the resumption of federal student loan payments in 2023, January 2025 spells trouble for those who haven’t caught up with their payments. Initially shielded by the Biden administration’s leniency period that expired in September 2024, delinquencies starting this January will severely impact borrowers’ credit scores. Expect an average drop of 129 points for those with stellar credit ratings.

January 20: Presidential Inauguration

Donald Trump’s inauguration for his second term could usher major policy changes impacting tariffs and tax regulations. With promises of significant tariffs on imports, particularly from China, and continued tax cuts, the economic landscape is set for an overhaul, influencing trade dynamics and potentially, market volatility.

January 29: Key Federal Reserve Decision

After the Federal Reserve’s trio of rate cuts in 2024, the first major decision of 2025 will set the tone for the economic year. With just two quarter-point rate cuts anticipated, the central banking system exhibits caution as it navigates a slower pace in adjusting monetary policies.

February 27: GDP Data Release

Vital for assessing economic health, the GDP data release this day will provide insights into the US economic activities for the fourth quarter of 2024 and the year in entirety. These figures play a crucial role in shaping investor confidence and future Federal Reserve decisions.

April 15: Tax Day and Retirement Contributions

A dual deadline day: not only is it the final day to file (or extend) your 2024 tax returns, but it also marks the deadline for making 2024 contributions to your IRAs or Roth IRAs. Ensuring these tasks are completed can safeguard potential refunds and maximize retirement savings.

June 30: FAFSA Deadline

For prospective college students, submitting the Free Application for Federal Student Aid by this date is crucial to unlock potentially necessary federal financial support for the upcoming academic year.

December 31: Expiry of Tax Cuts and Jobs Act Provisions

Provisions from the 2017 Tax Cuts and Jobs Act are set to expire by year-end. This includes changes in deductions and an increase in personal income tax rates unless new legislation is introduced.

Navigating the financial implications of these key dates requires diligence and foresight. As the political and economic environments adapt, keeping abreast of these changes will be vital for personal financial planning throughout 2025.

In a significant economic update, Saudi Arabia’s attempts to attract foreign direct investment (FDI) faced a downturn in the third quarter of 2024. The Kingdom reported a decrease in FDI inflows, falling to $4.8 billion, down 8% quarter-on-quarter through September, as per data from the Saudi General Authority for Statistics.

This downturn puts Saudi Arabia in a precarious position as it strives to meet an ambitious annual target of $29 billion in FDI for 2024. The Kingdom will now require one of its largest quarterly FDI inflows ever to achieve this goal by year-end.

Saudi Arabia has ambitious plans to increase its FDI to $100 billion by 2030, aiming to relieve the financial demands of its economic diversification efforts. This strategy includes harnessing foreign expertise to boost local industries such as technology and minerals exploration, crucial for the Kingdom’s growth and development.

Despite the downturn, Saudi investment officials remain optimistic. In October, Khalid Al-Falih, the Saudi Investment Minister, highlighted positive trends in the data, indicating potential improvements in the coming months. Significant announcements from international firms like Goldman Sachs Group Inc. and Z Capital Group during the Future Investment Initiative in Riyadh suggest forthcoming FDI boosts.

However, Saudi Arabia continues to grapple with economic pressures from subdued oil prices and high expenditure, which have enforced constraints on the nation’s budget. The Kingdom reported its first current account deficit since 2021 and is adjusting to a fiscal deficit projected at about 2.8% of GDP for this year.

Moreover, the global decline in oil prices has necessitated adjustments in Saudi’s economic strategies. With Brent crude trading around $74 a barrel, the Kingdom requires a price of $93 to balance its budget, a challenge compounded by necessary domestic investments by its sovereign wealth fund, which raise the break-even oil price to $108 per barrel.

The fourth quarter presents a crucial test for Saudi Arabia as it seeks to enhance its FDI inflows to fund its Vision 2030 objectives, amid ongoing geopolitical and economic challenges.

Stay tuned for further updates as we monitor these critical developments shaping the global economy.

The unexpected fall of Bashar al-Assad’s regime in Syria marks a significant turning point for the Middle East, introducing a new layer of uncertainty in an already volatile region. Assad’s ouster has created a power vacuum, and all eyes are now on Iran, which faces mounting challenges in recalibrating its regional strategy.

Iran’s Calculations Amid Regional Shifts

In the wake of Assad’s removal, Iranian Supreme Leader Ayatollah Ali Khamenei has vowed to rebuild alliances across the Levant, including with Hezbollah in Lebanon and Hamas in Gaza—both of which have been significantly weakened by recent conflicts. However, Iran’s position is increasingly precarious:

Domestic Challenges: Iran’s economy is under strain, with inflation soaring and sanctions biting deep. This economic pressure has fueled domestic unrest, complicating its ability to project power abroad.

Geopolitical Realignment: The loss of Assad, a key ally, weakens Iran’s strategic foothold in the region.

US Policy Shift: With Donald Trump returning to the White House, Iran faces the prospect of intensified US pressure. Trump’s administration has signaled a hardline stance, with clear opposition to Iran’s nuclear ambitions.

Nuclear Program and the Risks of Miscalculation

Recent reports from the International Atomic Energy Agency (IAEA) indicate that Iran has resumed enriching uranium to near weapons-grade levels. Tehran’s move is widely seen as a strategic gamble, signaling its readiness to escalate or de-escalate its nuclear program based on the actions of the US.

Key risks include:

Nuclear Deal Negotiations: Iranian President Masoud Pezeshkian, a reformer, has expressed a desire to revive the 2015 nuclear deal, which could ease sanctions and unlock economic potential. However, this depends on cooperation from Khamenei and a willingness from Trump to shift his “maximum pressure” approach.

Geopolitical Uncertainty: The lack of clarity on where both sides will draw the line raises the possibility of miscalculation, with potentially severe consequences for regional stability.

Economic Impact: Restoring the nuclear deal could flood global markets with Iranian oil, reshaping energy prices. Conversely, continued sanctions could deepen Iran’s economic struggles, heightening tensions further.

A Region in Transition

Assad’s fall comes after a year of political and military upheaval in the Middle East, triggered by events like the October 7 attack on Israel. Iran now faces the dual challenge of rebuilding its regional influence while managing escalating tensions with the US and its allies.

Khamenei’s promise to expand Iran’s network of allies is met with skepticism given the current state of its regional proxies and its struggling domestic economy. Meanwhile, Trump’s foreign policy team has made it clear that they will not allow Iran to obtain nuclear weapons, setting the stage for a potentially volatile confrontation.

What’s Next?

As Iran navigates this precarious moment, the region stands on the brink of transformation. The outcomes of these geopolitical shifts will have far-reaching consequences for global markets, energy supplies, and international relations. The next moves by both Tehran and Washington will be critical in determining the trajectory of the Middle East’s future.

Cresco Capital closely monitors global geopolitical developments and their impact on financial markets. Stay with us to stay informed about the latest developments and opportunities.