By John Persinos
Hurrah! The NASDAQ 100 is now in a bull market. The S&P 500 isn't far behind. But the emergence of a new bull market is typically met with enormous skepticism by investors who've gotten their brains beaten out by the bear.
Wariness certainly is warranted right now. Liquidity is the lifeblood of the equity markets, and until the Federal Reserve stops hiking interest rates, the upward movement of stocks probably won't show sustainable momentum.
The S&P 500 remains range bound between 3800 and 4100, teetering on the cusp of either a breakout or a breakdown. Much hinges on Fed policy.
Another concern is decelerating corporate earnings growth. Corporate earnings are expected to rack up a significant decline for the first quarter of 2023, which in turn could tip the scales toward a broader breakdown.
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