Even with Friday's big drop, it was a positive week for stocks. The S&P 500 was able to break above its recent trading range.
This was important as going into the week, stocks had been putting in a series of lower highs and lower lows (which is bad)
I have a mixed reaction to doing something new. I am a mixed personality in general, in that I do like to do some exploring (both physical and metaphorical) but I’m also reserved and comfortable with where I’m at. This week will both be new for me and
-Every bear market is different.
-Every bear market is the same.
These statements are not mutually exclusive. I'll explain after this week's talking points.
Last week, I discussed what we should expect from a bear market. At SEM we don't make the big bold "we're in a bear market" call
Throughout May the fear for many market participants was the US economy was heading into a recession. Last week, stocks and bonds staged an impressive rally with the riskiest of assets rallying the most. The justification from market commentators was interesting.
A year ago the title of that week's musings was "What can go wrong?" In it I identified the 4 pillars of the amazing stock market rally: Federal Reserve Support, Congressional Spending, Improving Economy, and the decline of COVID. I followed that with a list of things that could go
