The Market Decline is Much More Than About Tariffs....It's Part of a "Reset Process" to a Non-Steroids Era
A bounce is due soon, but the market is still ahead of its underlying fundamentals
Table of Contents:
1) The stock market should be due for a sharp near-term bounce. (We’re just worried that EVERYBODY is saying this.)
2) We’re sorry, but the fundamental backdrop still does not support the stock market at current levels.
3) Updating the charts on the S&P 500, the NDX Nasdaq 100, and the Russell 2000.
4) Chip stocks are getting ripe for a bounce. Broadcom could/should lead the way if it does!
5) Two quick unrelated issues to highlight: 1) Iran…..2) Will some leveraged player(s) close their doors soon?
6) Is the U.S. on the Brink of Recession?....Even if it isn’t, the stock market is still too expensive.
7) Credit spreads won’t reach alarming levels until it’s too late to react to them.
8) “Raise cash and get more defensive” was much more helpful in January.
9) The Treasury market is due for a short-term reversal, but yields are still likely headed lower.
10) Let’s look at what might happen if the bear market becomes more than a mild one.
11) Most energy stocks are incredibly oversold near-term. (We like CVX longer-term as well.)
12) Summary of our current stance…..This “reset process” will likely take quite a while to playout
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