The Economy Is Sending a Surprising Signal? with Mikkel Rosenvold | Macro Mondays

Midterm election results signal a significant shift in the American political landscape, with Republicans losing both the House and Senate, potentially shaping the next two years through increased legislative gridlock, government shutdowns, and intensified lawfare. Despite the recent $70 billion market de-grossing event triggered by AI-skeptic sentiment, the long-term outlook for AI infrastructure remains resilient as hyperscalers seek regulatory frameworks to solidify their competitive advantages. Meanwhile, geopolitical maneuvering in Abu Dhabi and Shenzhen suggests a push toward peace negotiations in Ukraine, though significant hurdles regarding security guarantees and border demarcations persist. Proprietary Nowcast data indicates a rapid cooling of inflation, hinting at an abrupt end to the current hiking cycle and a potential transition toward a more growth-oriented market regime. These developments collectively set the stage for a volatile but potentially opportunistic environment for investors heading into 2027.