‘Classic Bear Market Action’ (And The Real ‘Fed Put’ Question)

At least one widely-followed Wall Street strategist is undeterred in harboring a cautious outlook on US equities following January's unfortunate theatrics, which found stocks careening hither and thither, but mostly thither, where thither means lower. "We remain uninspired by last week's price action at the index level despite strong earnings prints and resilient retail participation," Morgan Stanley's Mike Wilson wrote Monday. "We remain sellers of rallies and of the belief that the volatility

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3 thoughts on “‘Classic Bear Market Action’ (And The Real ‘Fed Put’ Question)

  1. H — Nice post. Once again you point out how detached corporate and economic finance is from us slobs out here in “retail” investing. We are simply price takers who must needs always be late. Funny thing, my mentor told me that in 1968. Personal investors are always the last to know.

  2. H-Man, the primary concern is not the financial markets but Consumer Joe. Right now Consumer Joe is freaked out over inflation,watching food, rent, cars, gas and electric bills go through the roof. If Consumer Joe checks out, the 70% contribution by Consumer Joe to GDP fades big time. Now toss in rate hikes and Consumer Joe is now paying more in interest on everything from credit lines and mortgages. So Consumer Joe does what any consumer does when faced with these dire circumstances—– stop spending, reel in expenses and try to ride out the storm. Say goodbye to that 70% shot in the arm to GDP. Methinks the analysis should be more on what happens when Consumer Joe goes into hibernation. This is not a ripple in the pond but more like a tsunami.

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