Expanding on a comment I made yesterday: I had observed a growing call for a 10-20% pullback in the stock market by some analysts & economists. I don’t subscribe to that forecast and I doubt we’d have that kind of decline right now. 

From the Dow’s recently set all-time highs above 35,000 to where the Doe closed last Friday amounted to about 4.8% – which is just within the boundary of what I describe as a garden-variety retreat. 

When it comes to the Fed, words – at times – can speak louder than actions. This has played out over the years when the Fed’s words have reigned in the markets. 

The Fed’s announcement on Wednesday that it plans to raise rates in 2023 triggered a scramble among portfolio managers to realign portfolios given the announcement.

In my opinion, one of the better things to come out of the financial crisis was the transparency from the Fed. 

Two events for the market to consider or grapple with today: the Fed concludes its 2-day meeting and the summit meeting between Putin & Biden. 

With energy coming back into the leadership fold in 2021, “THEM” (Technology, Healthcare, Energy and Manufacturing) is back and doing very well. 

Years ago I would refer to the market’s core leadership as “THEM” – Technology, Healthcare, Energy and Manufacturing. 

The stock market is a good guide or a good filter for what might be relevant to what is being reported on the financial papers.