Find new investment opportunities based on Market Sentiment Indicator. Manage watchlist risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
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Find new investment opportunities based on Market Sentiment Indicator. Manage watchlist risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
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Most Trending
TrendspotteamFinding new investment opportunities based on Market Sentiment and Indicators. Manage portfolio risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
The reporting season so far hasn't been too disappointing. On the one hand, we have not seen companies presenting bad data because quite a few in the market feared that this is exactly what would actually happen. Inflationary pressures weigh on the economy as time goes by and the Fed will not give up until it sees real signs of giving in to the inflation that threatens to destroy the economy.
On the other hand, we have to remember that this is ultimately the stock market where people invest their best money in the hope of yielding them a return and profits. You can say that they "enjoyed" too much during the Corona period and now they are "paying" for it back and being sucked into the roller coaster that the stock market has been showing in recent months.
Analysts point to September-October as a turning point. In these months, approximately, we should know in the clearest way where we are headed. Is inflation under full control of the Fed, or is the economic situation dire and now a significant recession will begin. And yes, here too the answer is probably something in the middle.
A significant recession like that of 2008 will not be experienced now, and on the other hand the control of inflation will be estimated to be limited and slow. It could take two whole years until we see it drop below 2% as defined by the central banks, during which the interest rate will drop at a very measured rate while the stock market will not be satisfied.
The signs of moderation in global economic activity are increasing, but so far they do not indicate a sharp contraction in activity, while the moderation of inflation is slower than expected. This trend supports allowing the Fed's interest rate at its high level for an extended period of time, while expectations from the capital market are for interest rate decreases already in the coming months. The stock market embodies interest rate cuts starting in September. According to the interest rates inherent in the stock market, the Fed interest rate at the end of 2023 will drop to 4.5% (three interest rate reductions of 0.25% by the end of the year).
The University of Michigan's consumer sentiment index has fallen again in recent months and is at one of the historically low levels previously seen only in times of recession. In contrast, the Conference Board's consumer sentiment index, which represents a much larger sample, is still far from the levels seen during recessions.
The small business sentiment index recorded a decrease and it is also at the levels that characterize recession periods. Besides the problem of high inflation, businesses suffer greatly from the low quality of employees, much more than before the corona virus. Even the cost of employees is less disturbing. Quite surprisingly, businesses are not very bothered by high financing costs or low sales.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
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