As things currently stand, bad news (Unemployment up, consumer confidence down, GDP down) is viewed by the market as a rallying cry. These metrics show a slowing economy and signal to investors that the action taking by the Fed is working. However, this is obviously going to flip at some point.
What threshold do you guys think we need to hit for this market sentiment to flip? Is it a pause in rate hikes? Or could it even be a .5 raise? As you know, the market is always forward looking. At some point the rate hikes will stop and this negative data is going to “bad” again.
I have been thinking about this for a while, curious what you guys think?
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