Published June 7, 2024
After surprising to the upside in the first half of the year, and taking stocks to new highs, economic data has begun cooling off. This cooling has been moderate and pushed interest rates lower – supportive of the “soft landing” narrative, a happy recipe for stocks.
Think about those two sentences a bit. The market went up on better economic data in the first half of the year. Now, it’s continuing its climb because the economic data has become a little weaker. That is the definition of a bullish stock market environment where almost all news is perceived positively, any pullback in stocks is bought, and new highs keep getting achieved. (more…)