With all of the bearish sentiment around here, I’d like to give a reason as to why I’m bullish through the rest of 2022.
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Interest rate hikes have been priced in at this point. Unless the Fed does something totally unhinged, the market should respond positively when the hikes start being implemented.
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Economic data is strong. Consumer spending, GDP growth, unemployment numbers, etc. Periods of high inflation aren’t necessarily indicative of economic issues. GDP contraction and unemployment are much better indicators.
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Inflation seems to have peaked or is currently peaking, so we should start getting better inflation numbers going forward as interest rates move up.
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Russia/Ukraine is a temporary situation. WW3 is not going to happen. I’m not staying that Russia isn’t going to invade, but it doesn’t pose any long term risks to the US economy.
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Supply chain issues will ease, as many companies have guided this, and as someone who works in logistics I can tell you that the disruptions are easing.
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Covid is dying down and is exiting the pandemic phase. This is very overlooked for some reason.
While there are some risks present, and I expect a choppy market over the coming weeks, I think we make new highs by the end of 2022. That’s my call, and would love to hear arguments against it.
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