January 25, 2024
By Peter Bower
One day, investors look for and buy into many of the many opportunities in the broad market and then they seemingly give up on those stocks and rush back to big tech, or “The Magnificent Seven*” as the haven in a problematic economy. This action reflects investors’ changing view of the economy. Will we have an economic soft landing after all the Fed’s monetary tightening? Will the Fed pivot and start reducing rates in March or later? These and other questions abound. The answers to these change day by day as new data comes in.
As readers of this blog know, the Bull and his partners have been steadfast in their view that a recession was not likely. Inflation has retreated and will continue to do so, but not in a straight line. So far, this outlook is on point. Therefore, our outlook for equities is positive; returns will be good this year and a broader market will take hold. There will just be a lot of back and forth getting there! Stay steady my friends.
*Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla
The Lonely Bull
