This week has been an interesting one, and we have one more report PCE to go which will give an indicator to where we are heading in the new year. The PCE price index has been a good indicator of inflation, and provides an insight into what Fed might do in the upcoming meetings. I think it will play a crucial role in the market trend for the upcoming weeks.
I think we are on the crossroads of Bull & Bear market. On one hand if we dive deeper on the shiller index we can see it's only a few over-sized and over valued companies which are driving this index up which makes the market not that significantly overvalued overall but on the other side of the coin we can see the cost of living crisis and inflation hurting everyone globally.
My personal take is not so bullish in the months ahead I expect the market to go through a correction in 2025 and then hopefully a rebound close to 2026. My simple reason for this is the cost of living, most households are now out of the cheap fixed rate mortgage and are paying a heavy interest to hold on, even if one economy cracks under this pressure the domino effect is inevitable. So my take is a cautious one going forward.
But as they say "Markets can remain irrational longer than you can remain solvent" so I would not call it quits just would not be going all in and making sure I have cash in hand just incase.
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- antiti·12-20TOPI'm totally on the same page! I feel the same way, and I've kept a portion of my stocks as well. But I've already taken profits on half and kept some cash. 💸📈1Report