Why This Looks Like A Bear Market Rally
The current rise in the stock market is most likely a bounce from oversold levels as bulls argue that policy rates are still very low. But as Dan explains today, all the ingredients are in place for a bear market rally. The recent rally in stocks will only make the Fed even more hawkish in its monetary policy at a time when it’s trying to regain credibility on fighting inflation. The resulting market decline will be good news for our put option strategy.