Jobs market still too hotUnfortunately, with a resiliant jobs market the FED is going to continue hammering us with higher rates. No pivot in sight yet.
Next week Thursday we get the CPI report. If under 8% we could get some relief but anything flat month over month or worse higher and we are in for a longer cycle of rate tightening. This of course will negatively affect equities, although a lot has already been priced in so maybe S&P 3300 could be a bottom or another 10%.
The eye of the storm though continues to be real estate. There has never been a time in history where real estate prices rose during a period of climbing interest rates. Even when inflation begins to drop and unemployment rises, the FED may pause rates but will eventually need to hike still, although a little more slowly to get to their target 2%. End result for real estate.... it will be a long, long time, maybe a decade before we get anywhere close back to 2022 Spring prices.