Several headwinds that pummeled the stock market in 2022 have turned into tailwinds, setting the stage for a rally in U.S. equities heading into year-end, according to Tom Lee, head of research at Fundstrat Global Advisors.
“The Thanksgiving holiday has ended and now markets are entering the final key weeks of 2022,” said Lee, head of research at Fundstrat, in a note Monday. “While many may be tempted to ‘close the books’ for the year, we think the final 5 weeks will be ‘fireworks.’” Lee said that softer inflation seen in October appears “repeatable” and that the easing of price pressures should be “sufficient” for the Fed to slow its rapid pace of rate hikes, with December potentially being the last increase. Also, “if inflation is ‘as bad as 1980s’ I would have thought midterms would have been an incumbent massacre,” Lee said of the recent U.S. elections.
U.S. stocks traded lower on Monday, with the S&P 500 SPX down 0.8% at around 3,995, according to FactSet data. In the bond market, 10-year Treasury yields TMUBMUSD10Y were flat at 3.69% around midday Monday, while two-year yields TMUBMUSD02Y fell about five basis points to 4.43%.
😂 while nothing but headwinds have been the days topic(s). My goodness it’s either balls or incompetence and only time will tell.
🤡🤡🤡🤡🤡🤡 stop posting the opposite of what’s going to happen lol
You can put “could” in front of anything and get away with it.