Today's #blog covers why the #pain #trade is likely higher over the next few weeks as #sentiment improves and too much money is offside.
realinvestmentadvice.com/the-pain-trade…
realinvestmentadvice.com/the-pain-trade…
#Bullish optimism is building around:
- #Fed cutting rates
- #Economy will avoid #recession
- #Employment remains strong.
- #Earnings have corrected enough
Risk to that view remains a recession.
realinvestmentadvice.com/the-pain-trade…
- #Fed cutting rates
- #Economy will avoid #recession
- #Employment remains strong.
- #Earnings have corrected enough
Risk to that view remains a recession.
realinvestmentadvice.com/the-pain-trade…
It is called the “#paintrade” because it is the opposite of how #investors are currently positioned. Investor sentiment remains historically #bearish despite improvement since the October lows.
realinvestmentadvice.com/the-pain-trade…
realinvestmentadvice.com/the-pain-trade…
The “pain trade” is usually swift and occurs over one to three months. Once that #cycle is complete, the underlying #fundamental and #economic trends will retake control of the #markets.
realinvestmentadvice.com/the-pain-trade…
realinvestmentadvice.com/the-pain-trade…
While #earnings #estimates were cut sharply over the last couple of quarters, S&P is now expecting a -6.4% decline in earnings from Q3. #Investors are betting this quarter will be the worst for the earnings reversion cycle. (They will likely be wrong)
realinvestmentadvice.com/the-pain-trade…
realinvestmentadvice.com/the-pain-trade…
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