Resetting Expectations

So, you're saying that the Fed made a policy mistake?

Action to Take: Markets are trying to regain their footing this morning after the Fed spooked investors yesterday. Spooked? More like ripped the rug from under them…

While futures point higher, we've seen this head-fake before. Powell's message was clear: They need proof that inflation is dead before cutting rates. With Treasury yields surging past 4.5% and China's economy flashing warning signs, now isn't the time to be a hero.

Rule #1 of our negative momentum playbook applies to times like these: Cash is a position and often the strongest one. Build your wish list carefully—this selloff will create opportunities only for the patient. With a bit of luck, this market will start to gain traction when we release our 2025 outlook and New Year's Model Portfolio.

Ho Ho Ho!

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Momentum: Our momentum signals remain squarely negative following Wednesday's sharp selloff, with the S&P 500 dropping nearly 3% and the Nasdaq plunging 3.6%. We’ve been negative since December 10…