Weekly Market Recap: Overbought Stock Market Likely To Pullback, Then Power Even Higher
Powell unlocked the cage, setting the animal spirits loose
In this final Weekly Market Recap of 2023, portfolio manager Lance Roberts explains why a short-term pullback in stocks (and bonds, too) is highly likely.
They've simply moved so far, so quickly that technically-speaking they are at dangerously-high overbought extremes.
He thinks such a pullback will be short-lived, though.
There's little standing in the way of stocks moving even higher as we enter Q1, especially now that the Federal Reserve is guiding it will ease more next year than previously expected.
Plus, the economic data suggests a recession still looks unlikely anytime soon — corporate earnings are improving, jobs are still solid, and inflation is coming down -- it's a pretty positive cocktail for financial assets right now.
To watch this final weekly recap of the year, click here or on the image below:
VIDEOS THIS WEEK
In case you haven’t yet seen them, here are the other videos that ran on the new Thoughtful Money channel this week:
The World Order Is Fraying. Will The Global Economy Survive? | Michael Every
Stocks Are Richly-Priced & The Economy Is Late-Stage, So 'Selectivity' Is Key | Cameron Dawson
The Frozen, Unaffordable Housing Market Is "Unhealthy". So Where Are Prices Headed? | Lance Lambert
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cheers,
A
Regarding the TLT trade, can you ask Lance or Michael what their trigger is for exiting the trade, what their profit targets are? Are they basing their exit on 10-year Treasury targets or a specific TLT price or percentage gain? Do they plan to tier out, sell a certain percentage at profit target 1, then 2, etc. Or just liquidate the entire position at once?