Now that Fed Chairman Powell has made a “mini” pivot in his previous hawkish statements about coming interest rates hikes, is it time to join the recent rally? It is my inclination that those who are looking for a “Santa Claus” year-end rally, might be left with empty stockings hanging on their fireplaces, as the reality of a business slowdown, or recession, looks more likely.
It is worth noting that one of Morgan Stanley’s analyst’s Mike Wilson, is reported to be advising clients that it is “time to fade the market” which I interpret as “take your profits and run.” Of course even experts like Mr. Wilson can be wrong from time to time, but I see increasing signs of the economy in China, and world wide, slowing down and that could put a damper on Holiday Spirits.