Replies to post #101346 on Savvy Trades and Investments

[hweb2]

Great news on the rents. But I think the markets are fooling themselves yet again if they think the Fed is going to pivot anytime soon. I've been reading through a lot of Q3 earnings reports...and many companies are still talking about raising prices. So we've got a long way to go imo. I'll know the Fed is finally winning the battle with inflation when prices at my grocery store start coming down. Sure isn't happening yet. If anything, prices seem to still be climbing.

[wadegarret]

R59, Bear market rallies are orchestrated

IMO. I can't explain how it's done, but the fact that so many bear market rallies happen during bear markets, in and of itself says these rallies aren't random stock action.

As far as inflation. Yes rents came down .2% last month, and of course housing is plummeting(as it now costs 7% for a mortgage), however rent inflation continues to be a problem, and the bigger issue of Wage inflation is ongoing. I don't understand why investors are assuming the fed will now pause, especially after the Jackson Hole speech, where Powell was preparing consumers to feel pain. Bottom line is, I doubt the fed won't over shoot, as not hiking enough is more risky than sending the economy into recession, and making sure to cure this huge inflation problem.

As I said in an earlier post, I firmly believe we're still in the early innings of this bear market, and this present bear market rally(S&P up 11.5% from the bottom in two weeks), just like all others, has no meaning, except to hurt the shorts.