Commentary: Paul Ebeling on Wall Street and Beyond

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“More hawkishness from the Fed, high inflation, etc…nevertheless my work says that naysayers risk missing out on a run to a record highs, Tune out the Noise” — Paul Ebeling

The US economy

The Fed wants to cool the US housing market and shrink the economy further. And it hopes for ‘soft landing’ for the US economy, but history suggests it will not be able to prevent a recession.

Americans are increasingly worried about the economy, with about 6 in 10 concerned that a major recession is “right around the corner,” according to a recent survey from AllianzLife. The reasons for their anxiety are clear: Economic activity shrank in the first three months of the yr, inflation is at a 40-yr high

The central bank’s strategy: Boost borrowing costs in order to tamp down demand from consumers and businesses. The central bank’s rate-setting panel meets this wk, and many analysts expect it to boost rates Wednesday by half a percentage point.

Despite these problems, Americans are continuing to open their wallets, providing Key support for an economy that relies on consumer spending for 70 cents of every $1 of GDP.

Selling pressure in Treasuries intensified on Monday, driving the 10-yr yield to a more than 3 yr high, as investors brace for the Federal Reserve’s biggest interest-rate hike since Y 2000.

The Stock market

Sentiment is so Bearish that Wall Street will begin the next leg North and head to record territory.

The S&P 500 dropped 4.9% last month, its worst April since Y 1970, and sentiment toward stocks is terrible, with just 16% of respondents in a sentiment survey by the American Association of Individual Investors calling themselves Bullish. A good sign!

On the Crypto front

Bitcoin, the largest crypto by market value, fell 2.43% in the last 24 hrs to $38,607.36. It is down 2.3% in the last 7 sessions. Ethereum fell 3.5% to $2,817.94. The 2nd-largest cryptocurrency by market value has fallen 4% in the last wk.

I see the Top 10 cryptocurrencies heading due North in Y 2022, Bullish.

Have a prosperous week, Keep the Faith!