February 16, 2023
By Peter Bower
Wall Street strategists hate this market rally. They call it a “junk rally,” one “divorced from reality,” and some other derisive comments. This is not unusual but typical at the beginnings of a new bull market. No doubt, the advance will not be a straight line. The returns, so far and so early, are far more than many could have expected. Having periods of digestion must be expected. In market terms, these tend to be range trading with violent moves up and down, but mostly tracking sideways.
This is a good market. Investors are getting plenty of clues that a recession is not imminent. Earnings are holding up. Consumers are spending, and there is plenty of money around. Yes, there will be pockets of weakness as well as strength. Both may move around as our dynamic economy adjusts to normalized interest rates and the realities of a tight labor market. This is all normal. Stay steady my friends.
The Lonely Bull
