Are the Locusts Coming?

Our stock market has had a lot to contend with this year including inflation, higher interest rates, war, an energy crisis, hurricanes, supply chain issues, China, a crypto crash, and more. What next? The stock market declined for five and a half months into the middle of June but has been trading broadly sideways since. The bottom line is that much has been discounted into investors’ expectations.

What has not been factored in is good news. Perhaps the U.S. economy can escape a serious downturn. Some economic sectors are already softening and indicate that inflation may have already peaked. The war in Ukraine will not continue indefinitely. Its resolution would take a lot of pressure off energy and grain prices. Interest rates may also be closer to peaking than many investors surmise. Remember this typically happens six months or more before the actual high. The locusts are not coming; stay steady my friends.

The Lonely Bull