Reversing?

ANGLES. · Feb 26, 2023 · 6m

For all the different feel of this market in 2023, the price action is revealing that it is actually still broadly behaving much as it did in 2022. It’s still being driven by Fed expectations and those expectations are being determined by earnings and economic data.

In January, the data was mostly better-than-feared and the market developed the view that the Fed was close to ending rate hikes and that end-of-2023 interest rates would actually be lower than they were at the end of 2022. Stocks rallied hard and tech/growth names outperformed, including many of those that were slaughtered in…