(WCTW) Scott Bessent's Treasury Nomination Is One Of The Most Important Macro Events In Years
This nomination is the most important macro theme going forward. It will impact oil, natural gas, currencies, bonds, and emerging markets.
Over the weekend, we saw the big headline that President-elect Trump will pick Scott Bessent for Treasury Secretary. Since then, we've seen a lot of analysis from analysts trying to figure out what this means for global markets going forward.
In my opinion, this nomination is the most important macro theme going forward. It will impact oil, natural gas, currencies, bonds, and emerging markets. The ramifications of his appointment will not be obvious to many considering the immediate market moves following Trump's presidential victory.
In this piece, I hope to explain to you (and using Scott's own words) what's going to happen to global markets going forward.
Energy Policy (A word on Chris Wright)
Before I dive straight into how Scott Bessent will impact the oil and natural gas market, I just want to say that with the energy secretary going to Chris Wright, the end of woke investing is here.
ESG (environment, social, governance) investing is going to wither and die. Companies in Europe continue to make ESG the priority, but with Chris Wright at the helm, there's going to be some serious realism injected into global policies going forward.
In particular, the massively biased IEA will have to start publishing real analysis as opposed to the unrealistic doomsday scenario it continues to publish. The idea that global oil demand will peak by 2030 is nonsense from the start and there are already news reports talking about how Trump will threaten to stop funding the IEA if it continues to publish biased reports.
I've highlighted many times in the past the biased reports IEA produces. It is fear-mongering at best and fake news at worst. IEA will have to start publishing some real analysis, which will shed light on many of the topics we discuss today.