May 30, 2022
Tactical Growth Mandate - Weekly Briefing
What a big week we had in the stock markets. As you can recall, last week the S&P500 was down 20% and officially registered a bear market in the history books. This week was a different story as the S&P500 rallied 5.74% on the week and is now down only 14.96% YTD.
In a previous briefing we spoke about the market being due for a snapback rally and I think this is what we’re experiencing right now. There was no positive news or catalyst to drive the market higher – honestly I think it was just a lot of institutional money managers driving purchase orders into month-end.
My outlook for the next several weeks and months hasn’t changed. I remain cautious on these markets as the federal reserve continues to raise interest rates to fight inflation. Corporate earnings haven’t been that great and many CEOs are preparing for a recession in their forward-looking guidance. If I’m the coach, I’m going to put the defense back on the field soon as I expect this week’s rally to be short lived.