- Wobbly week for equity markets looks set to end positively in Europe
- US stocks continue to be pounded
- Elon Musk presses pause on his Twitter buyout bid
If this really is the repeat of 1970s-style stagflation and bear markets, then this is about where the S&P 500 current stands, down around 20 per cent from its record high... so lots further to run? Buyers remain cowed by the sharp descent of the market, the Nasdaq down about 30 per cent, the S&P 500 20 per cent, from their all-time highs. Previously this sort of decline has been the line in the sand, but the macro, by which I really mean the Fed, backdrop is totally different. The put is gone and it’s tightening – Powell warns this will mean ‘some pain’, and he’s just talking about mortgages. Don’t fight the Fed, don’t fight the tape.
