Major news is coming out of the market—Trump may nominate his former economic advisor, Hassett, as the next Fed chair. As soon as this rumor surfaced, the market responded enthusiastically.

Tech stocks surged across the board, and Bitcoin directly broke through the $91,000 mark. Why such a strong reaction? The key lies in Hassett’s stance on monetary policy. He has always been seen as a proponent of dovish policies, and the general market expectation is that if he really takes over the Fed, the rate cut cycle starting in June next year could be even more aggressive.

This expectation is driving capital into risk assets. Tech stocks and cryptocurrencies, being the sectors most sensitive to liquidity, have naturally become the biggest beneficiaries. But some sober analysts are warning: the current rally is based on policy expectations. If subsequent employment or inflation data surprises to the downside, market sentiment could quickly reverse.

From an asset allocation perspective, now is definitely not the time to go all-in. Keeping a balanced ratio of stocks, crypto assets, and cash, avoiding leverage, and building positions gradually is a more prudent strategy.

On the other hand, if Trump really succeeds in installing one of his own as Fed chair, the degree of monetary policy shift could exceed many people’s expectations. Once the liquidity floodgates open, it’s truly hard to say where the ceiling for this rally will be.

What’s your view on this possibility? If Hassett really takes the position, could he become the catalyst for the next bull market?