[ad_1]
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.”
![](https://gainspainscapital.com/wp-content/uploads/2023/03/7658be8e-d551-49b1-9392-df54d852534e.png)
In the meantime, regional banks are again on the lows.
![](https://gainspainscapital.com/wp-content/uploads/2023/03/sc-9.png)
Financials normally lead the broader market. Perhaps this time is completely different?
![](https://gainspainscapital.com/wp-content/uploads/2023/03/sc-12.png)
Or perhaps the subsequent leg down is coming and coming quickly.
[ad_2]
Source link