Since 2020 I have been baffled by the growth of the stock market. I understand the market is not the economy. I understand the influence of QE and the Federal Reserve. I know there are countless variables. All this being said, I believe the market is finally heading down. Not in a straight line, but it will test March 2020 lows.
Powell laid out the hawkish stance of the Fed. While many have reason to doubt the future actionability of the words, the messaging was crystal clear. Now that the QT deniers have a hole pricked in their sails, the market should lose its momentum since June. The question is, what does the horizon look like? Poor earnings, housing market softening (the slumping), natural disasters, nuclear catastrophes, or any unpredictable event. I'm not buying puts. I'm just tossing in my prediction.
What do ya'll think?
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