Don't Blame the Fed or Chairman Powell

Stock investors have been ignoring many warning signals for weeks

• The main reason for yesterday’s outsized decline in the stock market had more to do with the fact equity investors had been ignoring what the Fed has been saying for weeks…and what the Treasury market had been doing for weeks…than anything Chairman Powell said.

• A lot of technical damage was done yesterday, so if we see any more downside follow-through over the next week or so, it’s going to create some real problems.

• None of this means that the bull market is coming to an end, but the action we saw in several different markets yesterday was certainly something that should make investors rethink some of their assumptions about 2025.