Darius joined Charles Payne on Fox Business last week to discuss the market outlook, investor positioning, and more.
If you missed the interview, here is the most important takeaway to help you navigate upcoming trends in asset markets:
Recent Data Was Supportive of GOLDILOCKS Continuing to Persist, And We Believe Equities Have Room To Run
- The market is currently pricing in GOLDILOCKS as a result of the growing consensus among investors that a ‘soft landing’ is the most likely outcome for markets. If the market begins to believe a ‘no landing’ or ‘hard landing’ is the most likely outcome, asset markets will likely experience a downturn.
- Despite retail traders currently being overweight in stocks, our analysis suggests that broader investor allocations are not at levels that have historically aligned with bull market peaks. This indicates that there is still room for stock market growth from a positioning standpoint.
- The recent December Jobs report and the December ISM Services PMI both support the ‘soft landing’ outcome for markets. Until the majority of key economic data stops supporting the soft-landing consensus among investors, the GOLDILOCKS Top-Down Market Regime is likely to persist.
That’s a wrap!
If you found this blog post helpful:
1. Go to www.42macro.com to unlock actionable, hedge-fund-caliber investment insights.
3. Have a great day!