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By Graham Summers, MBA
Shares are rallying immediately as a result of they consider:
1) The financial institution disaster is over (it isn’t).
2) The Fed is again to easing (it isn’t).
3) The financial system is powerful (it isn’t).
4) The Fed can obtain a “gentle touchdown” (it could actually’t).
The Russell 2000 (IWM) which is extra intently aligned with the financial system and development has figured this out. It’s solely a matter of time earlier than the S&P 500 “will get it.”
In the meantime, regional banks are again on the lows.
Financials normally lead the broader market. Perhaps this time is completely different?
Or perhaps the subsequent leg down is coming and coming quickly.
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