July 13, 2023
By Peter Bower
It is looking more and more like the economy will make a soft landing after all the interest rate hikes by the Federal Reserve. More accurately, it might be described as no landing at all, just a slowing of growth, but growth, nonetheless. For the past two years, most Wall Street strategists have been wringing their hands and with a serious tone, warning that a recession in the U.S. was imminent. Still, none is in sight.
Early this year, the Lonely Bull stated that his belief was that a muddle-through environment was most likely. That has happened. Inflation has come down, employment is resilient, and business activity is mostly healthy. In addition, the stock market has been in a solid uptrend. Expect more to come. Yes, the Federal Reserve could still overplay their hand and over-tighten monetary conditions, but with metrics they watch moving in the right direction, they have less and less reason to do so. Sit back, enjoy the ride, and stay steady my friends.
The Lonely Bull
