[Altos Weekly Traders Edge] 2023 Crucial Takeaways So Far...Details Inside

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This year, despite the initial pessimism that descended on trading floors around the globe in 2022, the economy and asset prices have proven more resilient than anticipated. Here are the key takeaways we have leaned so far. The year started with skepticism towards the Federal Reserve's hawkish stance, despite it tightening its monetary policy at an unprecedented pace. Market prices were under the impression that rates would peak below 5% in the first half of 2023, and then the Fed would start cutting. Contrary to this, officials maintained that rates would end the year above 5% and cuts would be delayed until 2024. In a turn of events, the Fed managed to convince the market of its seriousness about curbing inflation by continuously raising rates, even during a mini-banking crisis. This has brought a significant victory for the central bank, whose credibility was at stake due to its earlier lackluster reaction to soaring prices. The market now anticipates the Fed’s benchmark rate to conclude the year at 5.4%. On the other hand, even with higher borrowing costs, most borrowers seem to have weathered the storm. Despite the increase in the average interest rate on high-risk debt, default rates have remained considerably lower than in past times of financial stress. It does not mean that the worst is over, but the interest-coverage ratios for high-yield borrowers being close to their healthiest level in 20 years provides a glimmer of hope. This year also saw the collapse of Silicon Valley Bank, which sent ripples through other regional banks and seemingly sparked a global contagion. Although no further banks have fallen since First Republic's failure in May, and markets managed to recover quickly, the fear of a lasting credit crunch lingered. The subsequent bail-out package from the Fed implied that even mid-sized lenders could be "too big to fail," potentially encouraging reckless risk-taking. Tech giants in America have once again managed to capture the attention of stock investors. After a rough 2022, the tech titans, led by Alphabet, Amazon, Apple, Microsoft, Tesla, Meta, and Nvidia, dominated the stock market returns in the first half of the year. Their resurgence has been powered by enormous investor enthusiasm for artificial intelligence and a belief that these big firms are in the best position to capitalize on it. Another key observation is that an inverted yield curve doesn't necessarily spell immediate doom. The inversion, a situation where short-term rates are above long-term ones and a market signal of an impending recession, had previously occurred only eight times in the last 50 years, each followed by a recession. But this year, both the economy and the stock market have seemingly defied this convention, leading to the possibility that this seemingly foolproof indicator might have misfired. Summing it up, 2023 has brought forth a multitude of lessons for investors. Despite the initial fears and uncertainties, the market has demonstrated resilience and adaptability, leaving us with valuable insights that will help shape our understanding and strategies for the future. - The Team at Altos Trading Missed this week's live Market Overview? Don't worry, we have the recording available for you! The team at Altos Trading is excited to be back on the mic and screen, and eager for this week's session. Our Weekly Market Overview is a public session we host for all, including our popular Q&A section that allows the audience to ask any market-related questions they have. We invite you to join us for these live sessions every Tuesday night. However, if you're unable to attend, we make sure the videos are accessible for you each Wednesday afternoon for your convenience, so you can stay updated on what you missed. This week our topics were... - Market Overview - Mapping Out Key Levels - Review 36 Month MA - Combining Trend/Momentum with Divergence - Ticker Q&A! [CLICK HERE TO WATCH THE FREE REPLAY]( Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](