Goldilocks Environment or Bull Trap?
The S&P 500 put the April dip behind it as it rose to new highs this week. The bulls have overtaken the bears as investors take any bit of economic information as a sign that rate cuts are coming soon. Are we in a Goldilocks environment or does something wicked this way come? Where might the market head next with the bulls in control? Let’s take a look at that and more!
The Coiled Spring Is Ready To Pop
The next few days are crucial for the markets, and your portfolios. The market wants to see a rate cut over the summer, but I don’t think they’ll get what they want, and that could lead to a bumpy ride ahead. Let’s break down what you need to know.
Is This Proof The Market Is Headed For Disaster?
Stocks are rallying and investors are shrugging off the Fed again, despite the Fed announcing that inflation isn’t where they want it to be and a Fed governor saying risks are tipped more toward higher inflation than a weaker economy. While they didn’t mention the risk of a rate hike, it still sounds like the Fed is trying to warn investors and investors don’t care.
Let’s take a look at what that means for the markets for the rest of this week and beyond.
Investors Shrug Off Risk And Go Back To Hopium
Stocks are rallying and investors are shrugging off the Fed again, despite the Fed announcing that inflation isn’t where they want it to be and a Fed governor saying risks are tipped more toward higher inflation than a weaker economy. While they didn’t mention the risk of a rate hike, it still sounds like the Fed is trying to warn investors and investors don’t care.
Let’s take a look at what that means for the markets for the rest of this week and beyond.
Lack of Jobs Spurs Market Optimism
If you recall, I wrote that while there was more downside risk in the market, there were two things that had the greatest chance of bringing the market out of its trading range: jobs reports and Apple mentioning anything related to bringing AI to their offerings. Both happened last week, so let’s see what the potential impact is for the week ahead.
How Far Will Apple Fall From The Tree?
With the recent conclusion of the FOMC meeting, the market can breathe a collective sigh of relief as some of the prevailing uncertainty dissipates. However, amidst the ongoing earnings season, where many companies are surpassing revenue expectations, concerns loom over future guidance, particularly if interest rates remain elevated. Let’s delve into the implications and potential outcomes for the upcoming week.
Riding The Coney Island Roller Coaster of Market Uncertainty
Could we see a rate hike before a rate cut? That is the question on the table that will most likely be answered in December of this year. If the Fed doesn’t take action and Wall Street priced in the potential of seven rate cuts, where does that put the S&P 500 for the rest of the year? I’ll tell you why I don’t think we’ll see movement until later this year and where that leaves the major indices until then.
The Three Things Wall Street Has Wrong
Bad news used to be good news; an increase in unemployment meant rate cuts were coming, but now bad news is just bad news. And the market is reacting, dipping down over 1% intraday! Why is everything upside down now and where are S&P 500 earnings telling us the market is headed? We’re going to take a look at that and more…
Here Come The Scare Bears
My inbox is flooded with articles about a 50% market drop, the end of the U.S. Dollar, the upcoming Lost Decade, and more. The Scare Bears would have you believe that it’s time to close up shop, stash your money in a mattress, and maybe revisit the market in 10 years. While the Scare Bears have some compelling arguments, I’ll break down why this is a normal corrective move and where it would make sense for the market to go from here.
Dip, Dive, or Dodge – Is a Recession Coming?
The latest round of economic data threw some cold water on the market rally and there’s a key piece of data causing the issue. It’s something that John writes about all the time and has been warning us about for the last year.
And that one data point is signaling an imminent recessionary bear market in the equities market.
