Everyone saying that the $SPY has bottomed… In what universe do these people live in…INFLATION IS STILL HIGH JUST LOOK AT WEEKLY GAS PRICES $VIX

Sharing is Caring!

by bpra93

 

 

The risk is a series of bear-market rallies that don’t last, hurting dip buyers and further damaging investor confidence

www.wsj.com/articles/conditions-are-ripe-for-a-deep-bear-market-11653166864?mod=hp_trending_now_article_pos1

With the S&P 500 briefly on Friday down 20% from its January peak, it is very tempting to start trying to call the end of the selloff. The problem is that only one of the conditions for a rally is in place, that everyone’s scared. That worked beautifully for timing the start of the 2020 rebound, but this time around may not be enough.

The other requirements are that investors start to see a way through the challenges, and that policy makers start to help. Without those, the risk is a series of bear-market rallies that don’t last, hurting dip buyers and further damaging investor confidence.

See also  Trudeau's Justice Minister David Lametti has just announced that people don’t have an “absolute right to own private property” in Canada.

This time central bankers are scared not by falling markets or the economic outlook, but by inflation. Sure, if something major breaks in the financial system, they will refocus on finance, and a recession may prompt them to rethink rate rises. But for now, inflation means that falling stock prices are seen merely as a side effect of tighter monetary policy, not a reason to invoke the “Fed put” and rescue investors.

Help Support Independent Media, Please Donate or Subscribe:
Trending:
See also  Druckenmiller: "2 undefeated records are: 1. once inflation gets above 5%, it's never come down unless fed funds have gotten above the CPI"

Views: 67

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.