We all know that the Fed easy money policy that started after the last financial crisis has fueled the growth of the US economy and has contributed to the reckless “investing” and rapid growth in the stock market. That is over a decade of stock market growth that was fueled by easy money policy, and then further exacerbated by the 2017 Trump tax cuts that allowed companies to invest their profits into the market, and the 2020/2021 stimulus packages that allowed many of us, irrespective of personal situation, to spend more. Throw in the death of millions, permanent disabilities, etc from COVID, early retirement from the exhaustion COVID brought to many, persistent unwavering demand for goods and a supply chain that is still not fixed or shifted to higher costs locations. Fed that has to use it’s limited toolset to get all of this inflation under control, some of which is now being felt in the bond market and banking sector. All that being said, anyone really think 2023/2024 is going to banner year for stocks?
In my opinion there is only one direction for the stock market and it’s down. Momentum traders and investors “hiding” in many big name stocks beware.
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