The stock market has been on a tear in 2023, with the S&P 500 up more than 20% year-to-date. However, there are signs that the market is starting to cool off, and some of the biggest bears on Wall Street are starting to give up.
In June and July, hedge funds covered their short positions on stocks at the highest rate in seven years, according to The Wall Street Journal. This means that they were betting that the market would go down, but they are now admitting that they were wrong.SourceMoneyGuru-https://www.mgkx.com/5070.html
Morgan Stanley strategist Mike Wilson, who has been one of the most vocal bears on Wall Street, recently turned less bearish. He now believes that the market will "chop around" for the rest of the year, but he no longer expects a major sell-off.SourceMoneyGuru-https://www.mgkx.com/5070.html
Carl Icahn, the activist investor, has also decided to give up on his bearish bets. In a letter to investors, he said that he is going to focus more on his activism work and less on hedging stocks.SourceMoneyGuru-https://www.mgkx.com/5070.html
The capitulation of bearish investors is a sign that the market is starting to change. Many investors are now worried about the slowing pace of economic growth and the rising cost of inflation. These concerns are starting to weigh on the stock market, and it is possible that we could see a major sell-off in the coming months.SourceMoneyGuru-https://www.mgkx.com/5070.html
If you are concerned about the market, there are a few things you can do to protect your portfolio. First, you can consider selling some of your riskier assets, such as stocks in growth companies. Second, you can buy some puts, which give you the right to sell stocks at a certain price in the future. This can help to protect your portfolio if the market does sell off.SourceMoneyGuru-https://www.mgkx.com/5070.html
It is important to remember that the stock market is cyclical, and it is always going to go up and down. However, the current environment is starting to look a lot like the market before the 2008 financial crisis. If you are concerned about the market, it is important to take action to protect your portfolio.SourceMoneyGuru-https://www.mgkx.com/5070.html
Here are some additional thoughts on the market:SourceMoneyGuru-https://www.mgkx.com/5070.html
- The Federal Reserve is expected to continue raising interest rates in an effort to combat inflation. This could lead to higher borrowing costs for businesses and consumers, which could slow economic growth.
- The war in Ukraine is ongoing, and it is causing uncertainty in the global economy. This could also weigh on the stock market.
- The housing market is starting to cool off, and this could lead to a decline in corporate earnings for companies that rely on housing construction and sales.
Overall, the market is starting to look more risky. If you are concerned about the market, it is important to take action to protect your portfolio.SourceMoneyGuru-https://www.mgkx.com/5070.html SourceMoneyGuru-https://www.mgkx.com/5070.html