I think right now the bearish catalysts are:
- More rate hikes than ppl anticipate
- Labor market starts to roll over
- Corporates start to see profits really dwindle
- Oil climbs higher
- Quantitative tightening hurts stocks
However, I think the risk is to the upside. There are a few bullish dynamics in the market that people are missing.
- Equity valuations relatively attractive
- Investors underweight stocks, lots of ppl in cash and we saw that over the past few weeks with equities soaring - ppl rotated baqcfk in.
- Sentiment seems to have bottomed out after hitting historic lows.
- Inflation might be peaking out, which means we may see fewer rates
- Dollar looks to have peaked
- Labor market still strong, corporate earnings were strong in 2Q
- Earning estimates have already come down on wall st.
- Other economies aren't really rolling over, there is still strength out there
