QQQ - Anticipating A Mid-Cycle Slowdown
2024-05-20 09:30:42 ET
Summary
- The Dow Jones Industrials surpassed 40,000, reaching new all-time highs.
- The gradual decline in inflation rates supports market growth.
- A soft landing is expected in the second half of the year, with small-cap stocks rebounding.
The major market averages achieved new all-time highs last week, with the Dow Jones Industrials (DJI) surpassing 40,000 at the close on Friday. This should come as no surprise to those investors who focused on positive rates of change in the high-frequency economic data over the past two years, led by the rate of inflation. The Consumer Price Index ((CPI)) peaked in June 2022 at 9.1%, which coincided with the lowest levels in the Russell 2000 (RTY) index during the last bear market. The core CPI peaked at 6.6% in September 2022, which was one month before the bear market low for the S&P 500 (SP500). Ever since, we have seen a gradual and steady decline in the annualized rates for both, as the major market indexes have ground higher with the typical corrections and pullbacks along the way that we should expect....
Anticipating A Mid-Cycle Slowdown