Weekend Insights

It's important for investors to realize that Fed's job description does not include preventing recessions. In fact, right now, they're telling us they'll keep conditions tight...even at the risk of causing one.

The process of taking the markets off artificial stimulus ("steroids") is far from over. It will continue to be a painful process and won't end until the markets are fully "normalized" (and trading on their own). That means more rough seas ahead in 2023.

If there is one thing we strongly believe that investors need to know as we move into 2023, it's the following: The Fed knows we need to get off the steroids, even if it causes a recession & a further decline in asset prices.

The next big phase of the bear market...where the stock market begins pricing-in a recession...seems to have begun over the past two weeks.

The markets are shifting in order to price-in a hard landing. This means interest rates and stocks will actually decline in tandem in the months ahead.