One. Two. Freddy’s coming for you
Oct 31, 2022
“One. Two. Freddy’s coming for you”. Some of the profit warnings we have seen for Q3 before Halloween, especially in the tech sector, were scary and whipped off 100s of billions of market caps. There is some technical support for the stock market: everything else staying equal and according to Goldman Sachs, we should see around 20 billion USD of daily stock demand till year end coming from systematic, corporates and retail in the US stock market. So far, so good: longer term however we believe the earnings estimates for 2023 are still too high and would need to be revised downwards in the current inflationary environment. Keep the lights on tonight and stay careful ( especially tonight ) !