“More hawkishness from the Fed, high inflation, talk of nucellar war are among the reasons to doubt this US stock market’s V shaped rebound. Now my work says that naysayers risk missing out on a run to a record highs, Tune out the Noise” — Paul Ebeling
The US economy
People have been concerned about the possibility that the economy could soon go into recession. “Recession” has been a trending topic, according to Google Search data, peaking during the wk ending 16th April. Once we are closer to the Fed declaring mission accomplished and, a spike in recession risk is avoided, investors will have a super opportunity to own Cyclicals.
As for a Key driving force for stocks over time: Q-1 corporate earnings have been exceeding estimates made by Wall Street analysts.
From FactSet: “For Q1 2022 (with 20% of S&P 500 companies reporting actual results), 79% of S&P 500 companies have reported a positive EPS surprise and 69% of S&P 500 companies have reported a positive revenue surprise.“
Anecdotes coming from corporations have generally been positive too. Shake off the gloom and doom, let this market consolidate.
On the Crypto front
According to a new report Grayscale recently sent a letter to the regulatory agency asking if they can convert their $40-B Bitcoin trust into an ETF.
Have a prosperous week, Keep the Faith!