The markets preformed well last week...despite the fact that the fundamental and geopolitical backdrop deteriorated. The markets cannot ignore this for long.
Some Cracks are Showing Up in the Small Cap Rally
Jan 3, 2024
Weekend Insights
Total 105 Posts
The stock market could rally more over the near-term, but given what the Fed is really trying to accomplish, we'll see lower-lows eventually in this bear market.
The stock market has not yet met two conditions that have been met at every bottom of a bear markets since WWII. Therefore, although the market will see sharp short-term bounces from time to time, the stock market will likely see lower-lows...and thus investors need act accordingly.
A Fed "pause" is much different that a Fed "pivot". If all we get is a "pause," the weakening economy (& lower earnings) will push the stock market lower.
The stock market is oversold, but signs of increased stress in the financial system are growing.....Will something "break" in the system soon?