Oct 05, 2022
Some call it market bottom, some call it a bear market bounce that will be short lived, some see it as a prelude of an easing of a Fed’s tightening cycle, others as short covering after overly bearish bets. We call the wave of explanations a vane exercise of financial journalism and career management of a surprised investor’s and strategist community following the best two-day equity rally since April 2020. For the moment, we only know 2 things for sure: 1/ the stronger the rebound and fall in interest rates, the less inclined the Fed will be to pivot and 2/ the Fed approach is all data dependant and will be driven by the economic releases and corporate results over the coming weeks/months. So we lean back and enjoy the rebound of the undervalued quality companies with strong earning power we are invested in while maintaining our defensive positioning. We are also reposting the below table as a reminder that more money has been lost in trying to time Mr Market than staying invested over time.