Minor Comeback For A Major Setback

Stocks went absolutely nuclear during Monday’s trading session, although that didn’t stop stocks from having their worst monthly performance since…drumroll please…March 2020.

The tech-heavy NASDAQ felt the brunt of the market selloff that entrenched the markets, dropping over 10%. The S&P faired slightly better down nearly 6%, and the DOW shedding nearly 4%.

The Wall Skreet boys called the unofficial close to the “perpetual bull market” in September, and the jury is still out on our proclamation. We’ve seen consumer spending slow down and the euphoria of the fairy tale land that was QE infinity is more and more under pressure any time the homie JPow takes the stage and succumbs to verbal diarrhea. It is true that QE infinity will soon be ending, and the era of cheap money is soon to be a thing of the past.

Assuming that earnings can keep everything afloat, we may not officially kiss this bull market goodbye, yet. Apple gave us a glimmer of hope after their earnings release last week. If every major weighting of the S&P can follow suit with Mr. Tim Apple, then there’s still some room left to grow for the broader equities markets. Although the euphoric nature of infinite money will serve as a damper on absurd stock prices, it’s still likely we’ll see modest growth. Key word: modest. Assuming companies can survive supply chain bottlenecks that all of a sudden came out of nowhere when Texas froze over a year ago, they’ll also have to maintain margins with inflation rising 7% in 2021, alone.

Just don’t ask me to effectively navigate this shit storm.