- Hopes and prayers answered! I said last weekend in the May 20 Equity CEF Performance update that I was expecting a bounce this week and that's exactly what happened.
- After seven down weeks in a row, the S&P 500 was finally up 6.6% last week while the Nasdaq-100 was up 7.1%. It was a broad-based rally that even extended to bonds.
- You can thank the Fed minutes release on Wednesday and a softer Personal Consumption Expenditure inflation report on Thursday, two economic calendar items I said to keep an eye on.
- That's a welcome relief and it seemed like we were back-to-the good old days when the fear-of-missing-out (FOMO) dominated trading. But will this rally have legs or will it peter-out?
- Even in 2008, we had rallies of as much as 10% from March to April and two 10%-15% rallies from October to December before the bear market finally hit a bottom in March of 2009.
For further details see:
Equity CEF Performances: Updated Through May 27, 2022