Below is the front cover of the latest Bloomberg Businessweek. It should be a very bullish contrary indicator for the stock market. In recent months, there have been plenty of signs of mounting bearish sentiment, which should be bullish from a contrarian perspective.
However, fighting the Fed when the Fed is fighting inflation is not a good idea whether one is a contrarian or not. We still expect to see the stock market higher next year, possibly at new highs by the end of 2023. But for now, while there are certainly plenty of attractive buying opportunities for long-term investors, there’s no rush to buy them. We have to wait for inflation to peak and for the Fed to complete its tightening cycle for the start of the next bull market.
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