Despite a late surge on Friday, the stock market had its 7th weekly decline. and the market indexes are close to breaking the closing lows of months ago.
Is this the time to think about “dipping your toes into the market?”
Maybe, but I don’t believe we have seen the panic selling yet that usually precedes an important bottom. Also, as we approach the Memorial Day weekend we still need to see if the Fed’s new policies of raising interest rates and slowly selling bonds to reduce their overloaded balance sheet, will slow inflation without causing a recession.
In my opinion, there could be a good deal more financial and stock market damage ahead. I think we have moved from a “buy the dips” strategy, into a “sell the rallies” strategy as 2022 unfolds.