Please enjoy this updated version of weekly commentary from the Reitmeister Total Return newsletter. Steve Reitmeister is the CEO of StockNews.com and Editor of the Reitmeister Total Return.
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January offered a rip roaring start for stock investors. The +6.2% result for S&P 500 (SPY) barely scratches the surface on how Risk On the month was versus the generous gains for many of 2022’s most beaten down growth stocks.
The party continued when the calendar first flipped to February. But then investors got served a series of far too hot inflation reports that reminded them the Fed’s fight was far from over. From there stocks headed lower with a -5% drop from the February peak to the current valley.
This sets up for a very interesting month of March with many potential catalysts on the calendar that could have stocks racing higher again… or more likely breaking back into bearish territory.
Let’s dig in deeper on the current market landscape to get our portfolios ready for what lies ahead.
Market Commentary
The best way to set the backdrop for the February sell off is by reminding everyone of this equation:
Higher Rates on the Way (5%+)
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Higher Rates in Place til at Least End of 2023
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6-12 months of lagged economic impact
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Already weak economic readings
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Fertile soil to create recession and thus extension of the bear market with lower lows on the way. Continue reading "Investors: Beware the Ides of March!"