A lot of folks have asked about the market charging higher despite the regional banking crisis. But isn't that the stock market for ya? It zigs when it should zag.
But... maybe it SHOULD have zigged: after all, what was overhanging the market for months? A hawkish Fed, higher rates, seemingly unending rate hikes, and sticky inflation.
Well...I have been telling clients for 8 months that "the Fed won't stop until something breaks" - something DID break, and so did some of the existing narrative.
So, the market FIRST finds relief from unwinding wrong positioning - a lot of people were in cash and FOMO took over.
Now... what about the economy and the effects of tightening credit you ask? Well, that's a story for another day. Mr. Market is usually only good at focusing on one thing at a time.
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