Carlsquare weekly market letter: Time to go fishing

Read the weekly market letter here:

Carlsquare Weekly market letter

• It is central bank week with the Fed today and the ECB tomorrow. The Fed is expected to raise its policy rate by 0.25%, but will it hint at a March hold? We don’t expect it, but it would boost the upside
• The Q4 earnings season is still on the soft side. But the equity market is still trending higher, as we expected. However, the skew index in the futures market suggests that it is mainly fast money driving the trend. Please trade close to the exit door!
• Since we are a little bit in the hands of the central banks, it is better to take the day off today and go fishing (or read a book) instead
• According to the Fed’s dot plot graph below, where the governors put their best guesses, rates will continue to rise from 2023 until the autumn of 2024.

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