The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Head of Equity Strategy
Summary: The US President yesterday took credit for the 50% stock market rally in the NASDAQ Composite Index since his election. This is a stunning act of hubris given that almost everything is out of his hands and that it is squarely the Fed’s U-turn on January 4 that has sparked the current sentiment rally.
S&P 500 continuous future (five year weekly prices):