Don’t forget the Markets are always forward looking. Investors hiding on the sidelines when the bull comes back will struggle for a generation to catch up. From my favorite business newsletter. Bottom Line: The U.S. economy is still fairly healthy, inflation has peaked and it certainly appears that interest rate increases are much nearer to an end. This is what encourages us the most: we now have better visibility. Over a year into this bear market, the Fed's trajectory is now a lot clearer amid economic confidence that we are not headed into a severe recession and at least a rough idea of how much more earnings might drop. The market hates uncertainty. Reducing uncertainty flips investor psychology. That said, anyone who thinks they know exactly how things will turn out is fooling themselves. There will always be surprises along the way, but after years of profound shocks, the road now looks a lot smoother . . . more "normal" than it did.
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