8/19/2024
By Charles Payne CEO & Principal Analyst

The stock market enjoyed its best week of the year, capping off a remarkable recovery. To quote Tiger Woods: “Winning takes care of everything."

However, the last two weeks should have been spent studying and understanding the jobs report to the degree that it can be understood. Returning to the jobs report, the Street doubted the Fed would step in fast enough to stave off a recession.

Sure, rate cuts occur during recessions, but there is a significant difference in the market's initial performance when the Fed fails to achieve a soft landing (normalizing the economy without shifting into negative performance).

This has increasingly become a (sad) joke for folks on Main Street, especially those with little or limited exposure to the stock market or other financial assets. For most Americans, the recession arrived months ago and has been masked in aggregate data.

The experts must see rich folks feeling the pinch before adjusting rates. That means an even deeper recession, which will not be suitable for the stock market. However, the earnings expectations game will help (beating low expectations and moving stocks more than the level or direction of earnings).

For now, the focus is on good news being good news (and making lousy news look like good news).

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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