After last week’s surge up in the cap-weighted S&P 500 into the quad witching that saw the index rally 3.5% to 4448, it is not surprising to see the equities take a breather this week. The news during this shortened week certainly was not supportive for additional gains, in my view, as we had hawkish central bank actions across Europe combined with weak economic data, Chair Powell’s testimonies in front of both house of Congress reiterated the commentary provided during the recent FOMC meeting that were skewed toward more hiking, and U.S. economic activity also showed incremental signs of deterioration. When combined with several measures of investors sentiment ranging from increasingly optimistic to extremely favorable, it certainly looks like the potential path higher for equities will be challenging.

During my client interactions, I continue to hear similar comments and frustrations.

I still do not get the sense that there is any overriding view. Clearly, I am hearing less uber bearish comments, but to be balanced I also do not hear much super bullish thoughts either. Thus, said another way there is little fear of significant downside risk and a decent amount of skepticism that a new broad-based bull market has begun, which has been my ongoing view since I ...

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