Bullish investors are starting to believe that the stock market is rebounding, but Wall Street strategists say that’s not the case. Bank analysts are warning that the rebound is actually just a classic bear market rally. They say stocks won’t truly revive until the Fed pulls back on its policy tightening. Of course, there’s some debate over when that will be. Bank of America believes the hikes could continue until February 2023.

Business Insider/George Glover
Wall Street is warning investors not to try to time the bottom in stocks, with the bear market potentially dragging on into 2023

Bullish investors have started believing the US stock markets are turning around, after a downbeat first half of the year.

Optimists such as Fundstrat’s Tom Lee have argued that prices for equities have bottomed out, and say the summer rally on the major US benchmarks is a flashing sign they’ll hit all-time-highs before the end of 2022.

The S&P 500 is up about 17% and the tech-heavy Nasdaq has gained over 20% over the past two months, as of early Friday. Traders have found cause for cheer in the Federal Reserve’s pledge to be data-dependent on interest-rate hikes and in a lower-than-expected July inflation print, which have eased worries about recession.

But Wall Street’s biggest names aren’t buying it. Big bank analysts have argued that stocks’ current rebound is just a classic bear market rally — when equities rise sharply but just for a short time, before resuming a long-term decline.

You can keep reading, here.

Investing.com/Stefan Gleason
Mixed Messaging From Fed Causing Confusion For Precious Metals

Precious metals markets are giving up ground this week as investors react to the latest musings from the Federal Reserve.

On Wednesday, the Fed released the minutes from its latest policy meeting. Officials acknowledged some of the warning signs of a weakening economy. That suggests they are likely to scale back future rate increases rather than implement additional 75 basis-point hikes.

But policymakers also admitted that inflation is still running uncomfortably high and seem poised to continue tightening to some extent.

Mixed messaging from the Fed caused confusion among investors. Some interpreted the Fed’s comments as hawkish while others saw them as more dovish than expected. Perhaps central bankers themselves are confused and don’t really know what they should be doing next.

Continue reading, here.

Rick’s Picks via GoldSeek/Rick Ackerman
Recession? What We Call It Is Irrelevant…

Call it a recession or anything else you prefer, but the bottom line is that the prosperity of decades past is not coming back. Thinking expansively about the economy is no longer part of the American mindset, since, as should be perfectly clear to everyone by now, the Fed’s epic, easy-credit hoax can do little but inflate asset values to the point of collapse. We are nearly there now, even accepting that the U.S stock market, afflicted by mass psychosis, will remain capable for a while of staging one last, fatally deceptive hurrah to make certain everyone is aboard for the crash that ends two generations of economic madness.

You can keep reading, here.

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