Market Review & Update
Last week, we laid out the bull and bear case for the market:
The Bull Case For 3,300
- Momentum
- Stock Buybacks
- Fed Rate Cuts
- Stoppage of QT
- Trade Deal
The Bear Case Against 3,300
- Earnings Deterioration
- Recession
- No Trade Deal/Higher Tariffs
- Credit-Related Event (Junk Bonds)
- Mean Reversion
- Volatility / Loss Of Confidence
We laid out the case for a near-term mean reversion because of the massive extension above the long-term mean. To wit:
"There is also just the simple issue that markets are very extended above their long-term trends, as