We may see stocks continue to rally over the next few weeks to months. To understand why, we must first understand where we fit in the bigger picture. If you don’t understand things like the economic cycle, it can be very difficult to make money, often chasing false rallies, or selling in false sell-offs. As we’re all painfully aware, interest rates have gone from about .5% to about 5% in the last 18 months. While they have gone up this high before, they never have this quickly. It’s inevitable that we’ll have credit issues, we just don’t know how severe or when. It always takes awhile to work its way through the system.
If you didn’t catch last week’s episode where we discussed the recession playbook, consider going back and taking a listen. We’re essentially right on track with inflation cooling off and starting to come down. This usually means the equity market will rally sharply. We already saw a surprise rally in Q4, and a hot January jobs report kept the rally alive. With 10x more money in the market than during the 2008 financial crisis, we’ve already seen the Nasdaq rebound 20% for the year. With the Nasdaq going up 50-60% before, there’s still plenty of room for improvement. Just have patience, things will take some time to play out.
What You’ll Learn:
- Why you have to understand the bigger, global, macro picture.
- What the Q4 Surprise Rally usually looks like.
- How political timelines can influence the stock market.
- And much more!
Favorite Quote:
“We, as human beings, have gotten increasingly impatient. Things will take some time to play out.” -Serge Berger
