Over-Enthusiastic?

ANGLES. · Mar 5, 2023 · 6m

February delivered a reality check to investors after a giddy January; the S&P 500 fell 2.6% for the month and the NASDAQ dropped 1.1%.

Stock and bond prices had risen impressively in January on the ideas that i) Inflation was declining, ie., disinflation, ii) the Fed was almost done with rate hikes and iii) there wasn’t going be a hard economic landing (ie., we were going to get inflation conquered without a recession). At least two of those three ideas are now pretty much considered off the table right now as a result of the data of the past three weeks. That’s why stocks gave back more…