Friends
Market sentiment has turned again. The bears seem to be back in control of the narrative. I know it’s only been a couple of trading sessions, but the bears have been able to kill rallies this year and, at least for the moment, appear to have killed the most recent rally which saw stocks erase more than half of the losses that were incurred in the first half of 2022. After Fed Chair Powell seemed to set a more dovish tone a couple of weeks ago, recent commentary from Fed officials has been very hawkish and the markets are concerned that a more hawkish tone might be emanating from Jackson Hole this week where the Fed Chair will present on Friday.
For the day, the Dow Jones Industrial Average was down 643 points to close at 33,063. The S&P 500 was down 90 points to finish the day at 4,137. The Nasdaq Composite Index was down 323 points to close at 12,381. Gold was down $14 to trade at $1,748 per ounce, while oil was down $.10 to trade at $90.67 per barrel WTI.
Once again, we have felt that the bear market of 2022 was going to take a long time to play out (more than 8 months and counting so far), and that exactly how low share prices end up going (maybe we have already seen the lows) was less important than how long the process is going to take. Stay patient, today is just another sign that the process is going to take a while.
Have a nice evening everyone.
