Market Enthusiasm Gone for the Moment

At this point in the year I see four things,

  1. Growth is continuing..
  2. Republicans in house see a recession caused by a debt limit induced crisis as their only possibility for winning in 2024..
  3. FED is going to raise rates on more time and stop.
  4. I don’t expect rates to drop later in the year as growth and inflation will be stronger than market expects..
  5. Market participants are loaded up in safe areas, totally ignoring growth areas..
  6. This leaves the market totally in a Surprise Environment where growth is in control..
  7. This means low enthusiasm for the market at the moment, with a lot of patience needed for the big trade.
  8. And to add to the uneasiness out there, Democrats are setting themselves up for a needless loss by allowing Biden-Harris Team to run in 2024. It is time for a new younger/stronger team, and the old powers of Biden, Schumer, and Durbin won’t let go. It is a shame with all the legislative successes that Biden achieved with his experience.
  9. With all this said, the Climate Tech Model is lightening up on the Chips/NVDA type stocks today and moving some of that equity to the EV and Solar area that have been stagnant during this base period over the past four months.

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