Now. A situation where we have to buy again?

Now. A situation where we have to buy again?

The stock is now undergoing adjustments,
It’s better to buy here

The correction now being made is the biggest drop since October 23.

Before the adjustments were made, the market rose excessively, and investment managers held positions above 100%.

That’s the highest sooty since November 2021, before the 20% correction happened.

The size of many positions in investment managers has led to market volatility in the short term.

Retail investors have also turned very positive.

I expected to cut interest rates several times in 24 years,
After the release of high inflation data,
Expectations for a rate cut are abating.

And long-term bond rates are also popping.

This usually goes with the S&P 500.
But this rise is unlikely to be the start of a turning point.

The base rate is currently 5.3%.

The FED says it will stick to high interest rates until inflation is under control.

If inflation does not fall, interest rates could rise to the base rate.

Despite the overall optimism and the possibility of a surge in interest rates,
This drop will end with a correction,
I think inflation is less likely to reignite.

The real turning point in the stock market is likely to be a recession.
It mainly happens as unemployment rises and interest rate reversals unravel.

We’ve seen it in previous dot-com bubbles and financial crises, but that’s not the case yet.

Expect another rise as the disinflation narrative turns around.

If there’s one risk here, it’s crude oil, which has continued its recent upward trend.

If Middle East tensions push crude prices higher, the S&P 500 could enter a deeper correction.

If tensions in the Middle East escalate,
The S&P 500 could fall to the 200-day horizon.

There’s a lot going on in the bull market,
I think it will happen with a lower probability.