The Burden Of Proof Lies Squarely With The Bears
Futures Are Slightly Higher: Sevens Report Quoted in Investing.com
Despite the S&P 500 rally, there are a number of risks emerging – Sevens Report
The burden of proof lies squarely with the bears and so far, the economic data and Fed speak hasn’t done enough to disprove any of those four bullish factors,” wrote the firm.
However, Sevens Research said the reality is there are still a number of risks emerging that need to be watched, and amidst 5k euphoria, they think that needs to be pointed out.
“Yes, data has pointed to a sweet spot for growth, inflation and the Fed. But that won’t last forever and there will be bad news for this market, there always is,” they added.
The firm notes that the risks that have quietly grown in the background during the rally are the chances of rate cut disappointment, the growing list of layoffs, commercial real estate, and valuations.
“Bottom line, it’s important to acknowledge that this rally has been driven by actual good news and bullish expectations being reinforced by actual data. At the same time, the risks that kept investors worried in October (and even throughout 2023) haven’t been vanquished—they simply haven’t shown up, yet,” concluded Sevens.
Also, click here to view the full Barron’s article published on February 13th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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