Weekend Insights

The stock market continues to act fabulously. However, does the Fed really want to inflate another bubble by cutting rates? What are they really seeing on the horizon?

The bond market is quite overbought (and so yields are oversold). Thus, if the CPI data or the Fed surprises the markets this week, it could cause problem for bond investors near term.

The technical “set up” for the tech stocks is extremely poor right now. If it doesn't bounce strongly & immediately, it could be in for a very rough month.

"However, eventually, the stock market is going to realize that a decline in inflation does not mean that the era of “free money” has returned.  Without free money, the stock market cannot maintain today’s high valuation levels."

No matter what happens in the short-term, the stock market still has a lot more “normalizing” to do down the road.