They begin when valuations are in the gutter. Historically, our greatest rip-roaring bull market share one main characteristic… What history says about the beginnings of bull markets I’m talking about a full-on, multi-year bullish extravaganza. Let’s dig into this a bit more since there’s a growing narrative that “bad news is good news” means the Fed is done with its rate hiking, and that’s going to usher in the next great bull market.Īnd to be clear, I’m not talking about a market that grinds higher, adding, say, 4% or 5% this year. Now, in light of the cooler PPI print and the banking chaos, there’s a reasonable takeaway:īut that doesn’t mean we’re on the verge of a rip-roaring bull market. It’s not a bad idea to spread your deposits over a handful of banks so that they don’t exceed the $250,000 FDIC insurance limit. But given the interconnected relationship between multinational global banks, this is also concerning for U. This is troubling news primarily for the European banking sector. This has already been a source of concern for not just Credit Suisse, but the potential domino effect on the broader banking sector.īut then, this morning, the Saudi National Bank, which holds a 10% stake in Credit Suisse, announced that it would not provide any monetary assistance to Credit Suisse if problems snowball. On Tuesday, Credit Suisse announced it had found “material weakness” in its financial reporting process from the last few years. Meanwhile, the bad news is that problems in the banking sector are intensifying. This is welcome news for the Fed and its fight against inflation, and reduces pressure as it mulls its rate hike decision next week.

Meanwhile, retail sales also fell 0.4% for the month. This morning brought good news and bad news…Īs to the good news, the Producer Price Index surprised everyone by showing that wholesale prices actually declined in February.Įstimates were for a 0.3% increase in prices. Credit Suisse is the latest bank to be rolling over … encouraging news from this morning’s PPI report … don’t count on a bull market just yet though … the valuation problem for stocks

Raging bull