The Fed has taken a soft lading off the table. Therefore, even though we could see a sharp bounce at any time, the stock market is headed lower.
Some Cracks are Showing Up in the Small Cap Rally
Jan 3, 2024
Weekend Insights
Total 105 Posts
HOWEVER, they’re both a bit less important than they usually are today.
It’s when the second leg develops (or sometimes, the third leg) that things get ugly. That’s when the biggest downgrades in economic growth and earnings growth take place.
We returned to a bearish stance too early this summer, but we were correct in our analysis that said the Fed is not going to “pivot” as early as most of Wall Street were thinking recently…and thus not as much as the markets were pricing-in for a while now.
This weekend’s piece is going to be a shortener one than usual. HOWEVER, I have provided A LOT of charts this weekend…which could turn out to be extremely compelling, so I think you’ll find this weekend’s piece quite interesting……Thank you very much.