TOMORROW WILL BE INTERESTINGWell I'm pretty happy moving out of the trading shares yesterday, and hopefully there will be an opportunity to re-enter. Equally happy too entering a full-on short on the S&P yesterday. It's been a good day.
Tomorrow's quarterly will be interesting. I fully expect it to be good/healthy/positive. But then this is now in what I think will be a protracted head wind courtesy of the market. Powell said some things today that are concerning. Most concerning:
1) Interest rates stand a good chance of going higher than the Fed thought was initially necessary. The narrative was for a Fed rate somewheree around 5%, which would be about 2 more .50point raises. Powell says now that he thinks possibly more will be needed.
2) Powell said something to the effect that "the window for a shallow recession is getting narrower". He didn't say impossible, but he certainly alluded to "less probable".
3) Powell said that rates would probably have to stay high(er) for longer than hoped for.
4) Powell said basically make no mistake, he WILL drive inflation down to the 2.5% level. Furthermore, he said that there is greater risk to under-shooting (not dealing with the problem) than overshooting. Translated, he is saying that he would rather hit too hard, than not hit enough.
So that is why the market dropped 500 points this afternoon.
Will this have an effect on Bombardier? To a certain extent yes, in as much as the October massive market updraft helped the stock climb. On the whole, I think Bombardier is in good shape, and in good shape to weather the storm. Personally, I think the stock will continue to rise, but will first retrace (which is normal) and then rise at a more measured and modest pace.
So we'll see what comes. LOTS of twists and turns in the market these days, and lots to consider.