I think this pullback is just a short pause. Investors are just taking profit considering that the bull has been for some time now but overall valuations are fairly close to the average. I think retail investors have been trained to buy the dip which explains the rapid reversal for the last 3 months and I expect this pattern to repeat itself again.
Burry has been shorting for a while already, even through this bull. He is a doomsday man so I generally ignore him except to look for opportunities to buy when he rocks the market.
I think US stocks will keep rising into mid 2026. Thus far, warnings of most companies have been good despite the fears of a recession. Inflation also looks like it is under control. Trump will likely continue to press the Fed to cut rates and this will help with their debt too. Cutting rates will definitely be a fail wind for the stock market so I do expect the market to rise into mid 2026 at least with multiple profit taking in between.
Market Rebound: Will Thanksgiving Week Break the Four-Year Pattern?
The S&P 500 index fell about 2% in November, marking its worst monthly performance since March, while market volatility surged. Citi’s Head of Wealth Management said there is still “some room” for the bull market, and this Wall Street giant has seen record inflows from wealthy clients this year.
Last Friday, expectations for a rate cut shifted again, prompting an emergency Fed intervention that ultimately turned the market positive.
Will this week see a “mindless” rally? With the Fed set to end QT in December, is this year’s decline over? Are you bullish or bearish?
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