Let’s assess the situation.
The bubble has popped. All of the 30x sales stocks are back down below 10x, some a lot cheaper. This is a traditional valuation level for growth, pre 2016.
The economy is slowing but the Fed can’t help due to high inflation, measured by the CPI.
Therefore, if tomorrow’s CPI numbers comes in even a little bit better than expected, markets are going to absolutely rip to the upside. We should soon enter a period of stability, where inflation is waning as the economy slows. To avoid earnings disasters like UPST, one could not buy stocks ahead of their results. Markets might improve during a slower inflationary period based on the notion the Fed can get less hawkish. HOWEVER, by the time summer swings around, the entire focus of the market will be on employment and economic growth. The major major concern isn’t inflation — because plunging share prices and growth rates solves that. The bigger issue down the road is economic prosperity in an environment that is deleterious to anything on par with scaleable globalized growth.
War looms and relations with east worsens daily. Ergo, take profits fast and don’t believe in bottoms.
I made 0.35% for the session, closed with 60% cash the rest long.If you enjoy the content at iBankCoin, please follow us on Twitter