Read the weekly market letter here:
Carlsquare weekly market letter
• The market is focused on movements from the Federal Reserve. This time, however, it was Janet Yellen, Secretary of the US Treasury, who caused the big move in the market. As former head of the Fed, is she mocking Jerome Powell, the current head of Fed? Anyway, she stirred up the market and triggered the pain trade that we have been warning about for the last few weeks
• The stock market was oversold before Yellen’s move. Let’s take one step at a time. Yellen’s move can be the first big step with easing for the credit market though, giving more liquidity to the whole market – “buy all assets, as one analyst claimed”
The graph below illustrates that the words “weak demand” mentioned on corporate earnings calls peaked in Q3 2023, according to analysis by Bloombergs.
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