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On September 18th, NBC reported, citing seven current and former U.S. and Western officials, that the Pentagon is assessing a significant reduction in U.S. military deployments in Europe, potentially withdrawing approximately 25,000 troops, roughly one-third of the current U.S. troop presence in the region. The proposed reduction could even extend to a maximum of 40,000 troops. If implemented, this would be the largest adjustment to the U.S. military presence in Europe since the end of the Cold War. Currently, the U.S. has approximately 80,000 troops stationed in Europe, primarily in Germany, Italy, and Spain. The report states that the Pentagon launched a six-month review of its European troop presence in June. European Command Commander Alex Greenkiewicz is expected to submit the assessment to Defense Secretary Hergsays soon, with plans potentially involving reductions in air and naval personnel, ground troops, or adjustments to troop deployment locations. Pentagon officials stated that the review aims to ensure U.S. military deployments align with the "America First" strategy. Some European countries and U.S. lawmakers have expressed concern about the large-scale withdrawal, arguing that it could weaken NATOs deterrent capabilities. Supporters, however, believe the U.S. should reallocate its overseas military resources, assigning more regional defense responsibilities to Europe. The relevant plan has not yet been finalized, and any withdrawal is expected to proceed after the final recommendation is submitted to the president for approval.According to NBC News, the Pentagon is considering withdrawing nearly a third of its U.S. troops from Europe.OpenAI launches a new AI model for law firms.The Dow Jones Industrial Average rose 316.14 points, or 0.61%, to close at 51,778.04 on Thursday, September 17; the S&P 500 rose 85.91 points, or 1.14%, to close at 7,637.72; and the Nasdaq Composite rose 439.87 points, or 1.69%, to close at 26,418.30.On September 18, voting began in the Kamchatka Krai and Chukotka Autonomous Oblast for the election of Russias ninth State Duma (lower house of parliament) at 8:00 a.m. local time. This is the first nationwide parliamentary election held in Russia since the special military operation against Ukraine in 2022.

Wharton Professor of Business School said: US stocks are at risk in the fourth quarter, bullish on gold!

Oct 26, 2021 10:57

U.S. stocks may not have a good time in the fourth quarter of this year. Last Friday, Wharton Finance Professor Jeremy Siegel, who is known for his active market forecasts, issued a warning about the market’s ability to respond to inflation. He believes that inflation will be a bigger problem than the Fed believes. Rising prices have brought serious risks. The Fed will face pressure to accelerate the reduction of bond purchases, and he believes that the market is not ready.



His cautious attitude is markedly different from his optimistic attitude in early January. In the "Trading Nation" program on January 4, he correctly predicted that the Dow Jones Industrial Average would reach 35,000 points in 2021, a 14% increase from the first opening this year. On August 16, the index reached a record high of 35631.19 points. Last Friday, the index closed at 34326.46 points.

He now believes that the biggest threat to Wall Street is that Fed Chairman Powell withdrew from loose monetary policy earlier than expected due to a sharp rise in inflation.

He pointed out: "We all know that many volatility in the stock market is related to the liquidity provided by the Federal Reserve. If the rate of cut is faster, it also means that interest rates will be raised faster. Both of these things are not good for the stock market. "

Siegel is particularly worried about the impact this will have on growth stocks, especially technology stocks. He believes that Nasdaq (Nasdaq), which is dominated by technology stocks, is currently only 5% away from its historical high, and may fall sharply, and the market will tilt towards value stocks.

He believes that this background bodes well for companies that have benefited from interest rate hikes, have pricing power, and pay dividends. In the context of inflation, underperforming utilities and consumer goods companies that are known for their dividends may see strong increases.

In addition, Siegel is also bullish on gold. He believes that as a hedge against inflation, gold has become relatively cheap, and pointed out that the popularity of Bitcoin is one reason.

Siegel said: "The market turned to Bitcoin, and I think they ignored gold. I remember that during the inflation of the 1970s, everyone switched to buying gold. Now in our digital world, investors are turning to Bitcoin. , And I think they ignored gold."

Siegel was not frightened by the rise in real estate prices. He said: "I don't think this is a bubble. Investors have already foreseen inflation to a certain extent... I think that mortgage interest rates will have to rise sharply to really hit the real estate market. Therefore, I think real estate is still A good asset worth having."



S&P 500 index daily chart

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