Market Enthusiasm Gone for the Moment
At this point in the year I see four things,
- Growth is continuing..
- Republicans in house see a recession caused by a debt limit induced crisis as their only possibility for winning in 2024..
- FED is going to raise rates on more time and stop.
- I don’t expect rates to drop later in the year as growth and inflation will be stronger than market expects..
- Market participants are loaded up in safe areas, totally ignoring growth areas..
- This leaves the market totally in a Surprise Environment where growth is in control..
- This means low enthusiasm for the market at the moment, with a lot of patience needed for the big trade.
- 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.
- 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.