RE:RE:RE:RE:RE:RE:RE:Ideal set up going forward? This is not true.
The bottom in the stock market never happens before the recession begins. The S&P 500 has peaked in earnings at the end of Q1 2022 and has been declining ever since. Margins are lower y/y and companies have to eat the extra costs.
I calculated an eps of 187.38 on the S&P 500 on a twelve months trailing basis. This compares to 197.91 at the end of Q1 2022. This paints a clear picture what is happening to the US economy. As interest rates continue to rise, this has to get worse as the year progresses. This means earnings will continue to compress and we will see more layoffs in the future.
The market is NOT pricing in a recession.
Don't fight the Fed.