Stocks gave back a little on Monday after bursting out to new highs last week. That is to be expected.
From here we will likely trade in a narrow range as investors await the next move from the Fed this Thursday. It’s a shame that it has come to this.
We don’t need more QE at this stage. And I fear doing so only sends the wrong signal to QE addicted traders. Let them throw a little tantrum if they don’t get what they want as more seasoned investors will gladly buy up shares on the dip.
Welcome to the Muddle Through Economy.
It never looks that good. And never looks that bad. When you start to appreciate that slow and steady is the pace, then easier to shake off all the false signals that tempt you to believe otherwise. And yes, slow and steady did win the race for the tortoise over the hare.
Best,
Steve Reitmeister (aka Reity… pronounced “Righty”)
Executive VP, Zacks Investment Research
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