Saylor Resumes Buying Mode Amid Terminal Rate Warning

Michael Saylor's strategy has resumed its 'buying mode' after a brief pause. This shift in strategy is evident from his company's recent Bitcoin purchase, which was valued at $75.7 million and marked the first such transaction since August. The purchase reflects Saylor's continued confidence in the cryptocurrency market.

Deutsche Bank has sounded a warning about the potential for central banks to underestimate terminal interest rates. With three major central banks - the US, Europe, and Japan - hiking rates simultaneously, Deutsche Bank notes that the market may still be underpricing the eventual terminal rates. The bank points out that financial conditions have not tightened in tandem with rate hikes, which could weaken their effect.

The experience of 2022 serves as a cautionary tale for investors. At that time, the market expected around 200 basis points of Fed rate hikes in the first year, but the actual figure exceeded 400 basis points, demonstrating that the market often underestimates terminal rates.