- For the stock market to bottom, we need a clear vision of how the Fed is going to back off on its assault on high-beta assets.
- There are more excess reserves in the system now, so the much more aggressive rate of QT may not bite right away, but QT has never reached this scale, so higher levels of volatility in stocks and bonds and further expansions in credit spreads are to be expected.
- While we can have a 5-10% rebound at any time, a firm bottom in the stock market is contingent on a series of resolutions to several uncertainties.
For further details see:
It's Too Early To Call A Bottom