Who's Right--Stocks or Bonds?

(7/25/22) Markets got a little over-extended last week, pulling back and retesting the 50-DMA without violating it. That turned previous resistance into support, broke out of the downtrend channel, and set up a row of higher lows. The resulting rally, however, has been more subdued in intensity; the S&P could work its way up to 4,170. Earnings season moves into high gear this week, the Fed's meeting on Wednesday will reveal their next rate decision and forward-looking commentary, and the first estimate of Q2 GDP hits on Thursday: all events and items that will affect market mentality. Meanwhile, bond yields are telling a lot about expectations for economic growth. While inflation may be slowing more than expected, so, too, is economic growth. A break below 2.65% on the 10-year Treasury, we could a see a sharp decline in short-term interest rates. These facts give two, competing theories about which way the markets will go...and which theory about the economy is correct.
Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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