Hesitation in the morning. Uncertainty for a few hours. Some tepid buying and a “so-so” finish. Not quite the “I gotta have em” dip buying of previous sell offs, but a nice little bounce none the less. Of course some nervousness and uncertainty after yesterday would certainly be understandable, but now it seems a lot of areas to focus on have moved to South America, notably Brazil and Venezuela. Its getting ugly down there and many people are NOT paying attention. AND, the political situation here didn’t end overnight. Too many bulls in too few stocks.
Its hard to buy into the premise of growth going north of 3% with inflation staying subdued all the while watching interest rates tick lower (or hold in here). Come on, 2.3% on the 10 year treasury with the Fed “yelling” (or Yellen) more rate increases this year. But, as long as the FAANG stocks hold up the market will continue to confound. Who knew robots would be so easy to fool.
So, keeping with the call; Sell in May and go away. Uncertainty is NOT good (ultimately) for the markets. Another 5%-10% DOWN with 15%-20% figured as a surprise. And, you won’t know it till its happened.
Have a nice evening.