The next 2 months are crucial. Thus far, most data is pointing towards a bear market rally. Bank of Japan delayed likely monetary tightening decisions that will impact global liquidity negativity until March when the next governor will be announced, and many are expecting a terminal US interest rate of 5.25% rather than a FED pivot very soon and drop in interest rates this year which seem to be priced into the markets presently. EPS are also down generally. It really doesn’t feel like a recession will be averted. The only significantly bullish news globally has been China reopening whilst some fear this will spark new covid variants, pandemic panic is mostly behind us.
Existing home sales have been falling faster today than they did during the Great Financial Crisis–Morgan Stanley pic.twitter.com/3ikAeu55ap
— Gunjan Banerji (@GunjanJS) February 6, 2023
h/t Infamous_Sympathy_91