While there are signs of capitulation such as the roaring VIX this morning and short-term indicators will scream "oversold" today, nothing is improving. The bond market broke down. We are in free fall territory now and every time bonds drop, the valuation of stocks drops. This may or may not be important in the present, but it matters for the question of "Is this a bear market?"
Similarly, crude oil hasn't cracked yet. How does the stock market's long-term outlook improve with rising commodity costs? Only by become much cheaper. Finally, I have seen people still expect a Fed pivot, or that stocks will drop until the Fed reverses. Same thing I've said going back to last year: the Fed won't change until at the very least, crude oil tumbles. Until then, there will be no change in policy. If crude rises and bonds fall, then the Fed is trapped and must contiue raising rates until it inflation comes out.
Varsity Blue’s Clues
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FEEDI have real suspicions about this information: the notion that the net
cost is about $13,000 a year is just plain wrong. It’s approaching $100,000
a ye...
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