THE WEEKLY TOP 10
Table of Contents:
1) Stagflation IS here…and it IS going to get worse.
2) On a technical basis, we sit at a CRITICAL juncture for the S&P 500 and NDX 100.
3) A “re-rating/re-valuation” process in the U.S. stock market was inevitable…and it will continue.
4) People still can’t make themselves believe that the “Fed put” is still at a much lower level.
5) Credit spreads continue to widen. God help us if we’re headed for a “credit event.”
6) Get ready for a lot more volatility in the currency markets!
7) Believe it or not, the XLK tech ETF is still above its March highs.
8) We tend to need an important change in policy to create a bottom in the stock market.
9) Will the “curse of the cover story” claim Elon Musk as a victim?
10) Summery of our current stance…....The Mork & Mindy syndrome.
1) The majority of Wall Street does their best to avoid discussing the issue of stagflation. No, they don’t completely ignore it, but they are not giving this issue the due it deserves. The war in Ukraine…and the way it has played-out thus far…has raised the odds substantially that we will indeed get a meaningful bout of meaningful stagflation over the next year or more.
It’s interesting to see how little attention the war in Ukraine has been getting over the past two weeks or so. In our opinion, the development that took place in the Russia/Ukraine War during April are just as important (or even more important) than any other issue facing the markets right now…..The war has shifted from one that was supposed to be a short-term “blitzkrieg” type of takeover of Ukraine…to one that has become a “war of attrition.” This means that ...
