Afraid Of Its Own Shadow.
As I’ll show in a moment, earnings and economic data last week generally propped up the case for a soft landing for the US economy and should have been celebrated, but the stock market seemed jumpy and afraid of its own shadow - seizing on anything negative it could find.
There’s a downside to the current high level of economic strength. In something of a return to the old “good news is bad news” narrative of 2021 and 2022, solid evidence of stronger growth was viewed suspiciously as possibly fueling inflation, maybe prompting the Fed to raise interest rates higher or at least hold them high…
The skinny
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