The Economy is OK…
Today, GDPNOW latest estimate for first quarter raised to 2.5 %. Core market drivers are in the Climate Change area, Chips. EV, Solar.
The current hot areas where investors are hiding, like discretionary and travel will fade in my opinion.
Stocks are currently under interest rate based pressure. Here is the chart that our model watches for the stock market breakout, where stocks start to run to the upside. This chart simply divides the SPX by the average market interest rate (30+10+5+2 yr). This chart illustrates the compression that rising interest rates rates have provided since early 2021. You may note that the high on stocks vs interest rates was what I regard and often have mentioned, the August 2020 date, some 15 months before the market saw the first indication to sell stocks. The sign to buy stocks basis this chart will come well before the masses climb on board.