2024-06-03 01:33:45 ET
Summary
- The S&P 500 Index has slowed but remains resilient, with low growth, low inflation, and low interest rates.
- Institutional investors are no longer making risk-free bond investments due to the inverted yield curve.
- Individual investors are experiencing a bullish trend with the inverted yield curve, while institutional investors are pessimistic about the market.
Introduction
The Economy, representing by the S&P 500 Index (SPY, the ETF of S&P 500), has slowed in the recent months, but remains resilient and steady, the Treasury Yield Curve [TYC] has been inverted since July 2022, continuing somewhat deeply inverted, but helping the market with a rising stiffener in the recent months, and the disinflation process has prevailed towards the 2% target, anchored firmly by the long-term inflation expectations.
Investors, bears or bulls, have been happy with the so-called "Goldilocks" situation, meaning a low growth (2 - 3%), a low inflation (3 - 4%), and a low interest rate (4 - 5%). The long-term (3 years or longer) bulls have performed acceptably, some active bears have made money with their skillful shortening the market reasonably from time to time....
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For further details see:
Who Wants The Market Crashed? The Federal Reserve Protects It