It’s easy to be a grumpy investor when you’ve missed out on the latest rally, but this is not the case- we actually bought SPY expecting a slight bump. However, what we are seeing is more than a slight bump.
Irrational exuberance is once again rearing it’s ugly head, driven by better than expected employment, an almost sure sign of a resilient economy- if there weren’t so many other flashing red lights.
A pause in rate hiking can actually hurt us by further entrenching inflation (which we predicted as far back as 2018!! Check the receipts). On the other hand- increasing rates can start to unleash a wave of defaults (think commercial real estate) in the already slammed banking sector. The cascading effects can be catastrophic to say the least!
So we’re going to back out of our small SPY position, and wait on the sidelines for a better day. Hopefully, we won’t be waiting too long! #BuyLowSellHigh
REconomix 