Periods of economic weakness put into sharp focus those companies with reliable earnings streams, and in particular, reliable dividend streams.
It's hard to blame the consumer for pulling back as we head into 2023.
Plus, a British tabloid reports of Apple's possible interest in buying the iconic Manchester United soccer club.
These are the emerging markets to target next year, with EM growth set to easily outrun that of the recession-bound developed world.
The question is, how far will traders push at this point before they take profits and start positioning for a pullback?
A big part of the answer depends on the price of oil.
Could the Fed be persuaded to change their view?
The S&P 500 is struggling to clear a major technical hurdle and that could signal trouble for those who are expecting a significant year-end rally.
Consumers account for roughly 70% of economic activity and at this point they are tapped out.
Make no mistake, the S&P 500 is currently strong from a technical perspective. That said, there is traffic ahead.
There is still a good likelihood that inflation could spike again or that economic slowing will pick up, and the danger of a recession is not insignificant.
It feels frothy out there.
The market is in good technical shape for more upside, however, there still are economic headwinds.
Here's how I'd be playing things right now.
The rate of inflation may indeed be coming down, but it is likely to remain at elevated levels for quite some time, and so are interest rates.
Plus, more key tech earnings reports are coming out this week.
The more important question is how far this counter-trend bounce can go even if it isn't a bottom.
Equities had a terrific day on Thursday, but the S&P 500 still must clear a couple big technical hurdles to prove the rally will last; plus, a quick look at trading Tesla.
Inflation is likely to stay above the Fed's target throughout 2023 at the very least.
You can't kick yourself for missing out on Thursday's big rally if you preferred to be underinvested going into the CPI report based on your investment or trading style.
Plus, trading volume on the Big Board and Nasdaq got turned up to ear-deafening levels on Thursday.
Bear market bounces can last longer than expected, so focus on the price action to see where Thursday's big rebound may lead.
The hint of easing inflation has produced a spike in Asia's most-battered market, with a tweak of China's Covid quarantine rules thrown in for good measure.
There was a cornucopia of reasons why investors fled risk assets on Wednesday for the perceived safety of cash.
The market has been distracted by the election and crypto woes, but today's Consumer Price Index data will have a big impact on the size of the next rate hike.
In the midst of small-cap earnings season, there are brutal selloffs occurring in some of these stocks.
The CPI report will hit tomorrow morning and that is going to be a significant market mover.
Even a small win for the Democrats could be reason to buy.
The S&P 500 has posted a positive return for the 12-month period after a midterm election 19 consecutive times. That's a pretty nice batting average.
The focus is on positioning for the election and CPI Thursday.