There is unrealistic fear and worry about the markets and the economic situation not only in the US but especially outside the US, primarily in CHINA, rest of ASIA, and Europe.
Events in CHINA over the weekend has already convinced the regime there to start to change the damaging COVID NET ZERO policy and one should expect more this during the next 6 to 8 weeks. It has been an amazing 48 hours in CHINA with bullish prospects for the markets there and rest of Asia from more and more measures to open up ... in other words, the CHINESE are quietly
abandoning that COVID NET ZERO crap ....
There will be an increase in COVID rates but the CHINESE have finally realized they must now risk higher COVID rates while opening up the economy or ELSE risk more protests from the people and deteriorating economic conditions.
There will be pullbacks in the US market, in the soaring German & EU markets also, but my FF is BULLS grinding this UP for the rest of 2022 WITH an IT high above ES 4250 in January and then again in February or March 2023.
FED will not pivot this week but they will suggest the end of the 75bps hikes and reduce to 50bps - maybe only 2 more and then wait to see if this achieves the lower inflation targets.
I think PEAK YIELDS and PEAK DOLLAR have been achieved and both will decline for a few weeks ....
I hold TLT and UVXY CALLS and a few small holdings -- INDA, XLF.
Will build a new LONG position if market drops
With an unsettled GLOBAL GEOPOLITICAL situation beware! Markets can plunge in this environment so there has to be the appropriate trade & money management.