Friends
The economy is slowing, corporate earnings are slipping, commercial real estate is on shaky grounds, consumers are spread thin, inflation is still pretty high, and the Fed is still tightening monetary policy. Did I mention that stocks moved higher today? Never have I seen in my more than 38 years in the business a so perfectly laid out narrative (banks struggling, economic recession, earnings recession, and extended stock valuations = lower stock prices ahead). Stocks have to go down, eventually, right? Sell in May and go away! All I know is, to this point, the bulls haven’t got the message. Or maybe, just because everyone is on the same side of the narrative, positioning is the story. Have you heard anyone of the experts on the business news channels say that they have been adding to equities this year? Do you know anyone personally who has been increasing their stock exposure this year? The money flowing into money market funds has been historic. Did I mention stocks moved higher today?
By the close, the Dow Jones Industrial Average was up 383 points to close at 34,030. The S&P 500 was up 54 points to close at 4,146. The Nasdaq Composite Index was up 236 points to close at 12,166. Gold was up $29 to trade at $2,054 per ounce, while oil was down $.98 to trade at $82.28 per barrel WTI.
We kick off earnings season tomorrow with reports with some of the bigger banks in the country, and we also will get a look at retail sales. Will this be when reality starts to kick in? Did I mention that stocks moved higher today? Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
