Hello Again – Today we’re gonna talk about “What could go right?”. I have been and continue to be optimistic. But why? People ask me this all the time, they say Mike, I just don’t understand your level of optimism. And I get it. At times it is hard to maintain. But nonetheless, the story has not changed. It has been delayed, but it has not changed. We’ve been in the soup for 16 months folks. So really, I look around and ask myself what could go right from here?
First off, inflation seems to of come down by quite a bit. In fact, according to my friends at Fundstrat, in 40% of the CPI categories prices are lower than what they were last year. That’s deflation folks.
Second, the Fed could stop raising rates. They don’t even have to cut rates, but if they just stopped raising that would be a positive.
Third, the war in Europe could end. This would free up more global supply, and the reconstruction process could begin in Ukraine which would be very good for global business and the stock market.
And Lastly, the debt limit negotiations could yield some real fruit. This is big in my opinion. For the last several years the govt is spending and giving away money like a drunken tourist on a Saturday night. We all know this is not sustainable, and now that there is another party at the table trying to keep the current administration in check, there is real hope that they could come out of this with some long-term spending concessions that are vital in my humble opinion. This current imbalance cannot go on forever, and the current course is a tragedy in the making. But some people are starting to figure this out. Let’s hope a grand agreement comes out of this that is good for the country.
So there. Ya see? There are lots of things that can right. And if some of these things start to come to pass, then mark my words, the stock market will be higher in the future than where it is right now.
Investors with long-term money……keep it invested and be patient! Clients with conservative money or short-term money, let’s keep taking advantage of these good CD rates right now.
We have three advisors here now, and we are taking new clients.
Best Regards,
Mike
S&P 500 Since June of 2022