The correction to continue
Stifel's macro guru Barry Bannister has been spot on when it comes to his bearish view (outlined here recently), so when he says the correction isn't over, you listen. He reiterates his 4200 px target for SPX ("probably in Q1 2022"). He argues there are five signs needed in order for the major index low to occur, but "none are in the offing at this writing":
1. Fed need to turn more dovish - that's gonna be hard before the first rate increase...
2. US PMI manufacturing index needs to bottom out..."which we doubt occurs before the end of 1Q22"3. Global M2 money supply growth would have to decisively bottom (and the dollar top)...not occurring until the CNH weakens4. SPX EPS beats minus misses needs to bottom out (see more )5. The Ukraine situation needs to calm down (US living standards can't diminish, think energy, food costs and Russia)
1. Fed need to turn more dovish - that's gonna be hard before the first rate increase...
2. US PMI manufacturing index needs to bottom out..."which we doubt occurs before the end of 1Q22"3. Global M2 money supply growth would have to decisively bottom (and the dollar top)...not occurring until the CNH weakens4. SPX EPS beats minus misses needs to bottom out (see more )5. The Ukraine situation needs to calm down (US living standards can't diminish, think energy, food costs and Russia)
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