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December 22, 2023 - If there is ANY doubt about how infatuated this market is with interest rates, well the action over the past 2 weeks will put that to rest. J. Powell has hinted of lower rates in 2024 and markets always anticipate the future; so off we go. Not even some tempering words about forward earnings from the likes of Apple, Nike or FedEx could put a damper on this "feel'in good" move. Geopolitical or domestic issues? Nah, the market will worry about that "tomorrow".
Here's the trend bounded by a +/- 2 standard deviation channel. Likely a slight dip lower before a resumption of the climb. The big thing to watch for is whether there will be tax selling of any magnitude after the first of the year that shows sector rotation (& a tax delay of a year). We'll just have to wait and see. Interest rates remain inverted, but not many care. (short term rates above long term = an inversion) I'm about 70% invested looking for opportunity in a set back. Until then wishing all a . . .
Very Happy & Healthy New Year. ............ Tom ............
(more charts at: www.Special-Risk.net; chart courtesy of MetaStock; used with permission)