Current situation:
1. $VIX trading lower despite 50+ point $SPX reversal
2. Stocks down like a recession is coming
3. Oil prices up like the recession was canceled
4. Gold up like inflation hasn’t peaked
5. Bonds up like inflation peaked
This market can’t make up its mind.
— The Kobeissi Letter (@KobeissiLetter) January 12, 2023
BLOOMBERG BRIEFING: Key Strategist Contends ‘We’re Back in a Bull Market.’
The day after the World Bank sounded the alarm about the global economy’s prospects for 2023, Edward Yardeni, the strategist who saw resilience in the US economy last year when almost everyone else was predicting recession, remains sanguine about where global financial assets including US stocks are headed. “The outlook for the world economy is actually improving,” the president and founder of Yardeni Research said Wednesday. US equities “made a low on Oct. 12. That was the end of the bear market and we’re back in a bull market.” Since closing at 3,577.03 that day, the S&P 500 has risen almost 10%, so maybe there’s something to that.
Not everybody has gotten the memo, however:
● Corporate Carnage Commences: Goldman Sachs Will Lay Off 3200 Employees.
● Alphabet to cut staff of health sciences unit Verily by 15%.
● Parler’s parent company has laid off a majority of its staff.