This chart is making a lot of investors panic
But the data tells a different story for now
A thread 🧵
But the data tells a different story for now
A thread 🧵
2/ Recently, some people have been comparing today’s market to the 1970s
If we overlay a 1970s chart on today’s interest rates, the similarities stand out
It’s easy to see why people get nervous when rates jump
But the data tells a different story
If we overlay a 1970s chart on today’s interest rates, the similarities stand out
It’s easy to see why people get nervous when rates jump
But the data tells a different story
3/ In the 1970s, there were 3 waves of inflation
Each one progressively larger than the previous one
Which led to a prolonged period of rising rates
Each one progressively larger than the previous one
Which led to a prolonged period of rising rates
4/ Today, US inflation has been falling sharply, not rising
This is not the inflationary environment like the 1970s or 2021 that led to rising interest rates
This is not the inflationary environment like the 1970s or 2021 that led to rising interest rates
5/ Since interest rates tend to follow inflation, our expectation is that rates will likely trend lower
Assuming we don’t see a major escalation of conflict in the Middle East
Assuming we don’t see a major escalation of conflict in the Middle East
6/ Lower interest rates should be a net positive for the stock market
Just as rising rates were a headwind
Just as rising rates were a headwind
7/ The market recently broke out of a 3-month consolidation
With all key moving averages still pointing up
These are signs of a strong and healthy uptrend
With all key moving averages still pointing up
These are signs of a strong and healthy uptrend
8/ We’ve made some profitable trades with our clients throughout this bull market
Our buy & sell alerts on individual stocks, ETFs, crypto, and commodities have led to big winners
While our strict risk management has helped in keeping losses small and limited
Our buy & sell alerts on individual stocks, ETFs, crypto, and commodities have led to big winners
While our strict risk management has helped in keeping losses small and limited
9/ View our track record for FREE on our website
Our members have had a solid year
With an avg. win of 17.37% and an avg. loss of just 3.78%
Get real-time Trade Alerts at:
bit.ly/BravosResearch
Our members have had a solid year
With an avg. win of 17.37% and an avg. loss of just 3.78%
Get real-time Trade Alerts at:
bit.ly/BravosResearch
10/ Thanks for reading!
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @bravosresearch for more market insights, finance and investment strategies
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @bravosresearch for more market insights, finance and investment strategies
https://x.com/bravosresearch/status/1848379184332357904
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