[Altos Weekly Traders Edge] 10 Reasons the Market Made Us Thankful in 2023

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Here are 10 reasons to be thankful in the financial markets this year: U.S. Economy's Strength: Contrary to predictions, the U.S. economy didn’t plunge into a recession but instead showed impressive growth. Affordable Thanksgiving Celebrations: Travel and meal costs for Thanksgiving are on the decline. Gas, airfares, and even classic dishes like turkey and cranberries are cheaper than last year, easing the burden on our wallets. Declining Inflation Rate: From a high of 9.1% in 2022 to 3.2%, the drop in inflation is a welcome change. Despite ongoing budget strains for many households, this decline positively impacts financial markets, mimicking historical trends post-peak inflation. Federal Reserve’s Rate Hikes Slowing Down: With inflation rates decreasing, it seems like the Federal Reserve might pause its rate hikes. This is great news for investors who are wary of going against the Fed's policies. Robust Job Market: Unemployment rates have consistently stayed below 4%, with jobless claims lower than the long-term average, highlighting a strong job market. Stability in Home Mortgages: Despite significant interest rate hikes, American households haven’t been as affected, thanks to fixed-rate mortgages. A large portion of homeowners enjoys low rates, thanks to refinancing during the pandemic. Investor Caution: There's a lack of euphoria among investors, with a substantial amount of money in bank deposits and money market strategies. This could indicate potential future investments in credit and equity markets. Strong Corporate Earnings: Corporate earnings have nearly doubled since the pandemic low, indicating robust business performance. Higher Yields in Fixed Income: Investors now have access to higher interest rates across various bonds, a significant shift from the recent past where higher yields were a rarity. U.S. Economy’s Resilience: History has shown us that despite numerous challenges, the U.S. economy tends to bounce back stronger. The S&P 500 Index’s performance is a testament to this resilience. As we enjoy Thanksgiving and reflect on the past year, there's a lot in the financial world to be grateful for. The resilience and positive shifts in the economy and markets give us reasons to be hopeful and thankful. Happy Thanksgiving, everyone – stay safe and healthy! - The Team at Altos Trading Sponsor Thanks to the “Income Glitch” on one ticker, [this computer whiz]( has nailed a 100% success rate on 52 trade opportunities and counting! That’s 52 wins … 0 losers - a 100% win rate. [Seriously, check it out. I promise it’s NOT too good to be true.]( The ‘Roaring 2020s’: Why Stocks Are Poised for a Historic Boom Thanks to AI and Cooling Inflation As the stock market recently paused its upward trajectory, Ed Yardeni of Yardeni Research maintains an optimistic outlook for investors. In a recent note, he suggests that the S&P 500 could reach or even surpass its record high by the end of this year or early next year. This comes after a period of bullish sentiment from Yardeni, who has consistently believed that the Federal Reserve's rate hikes would successfully curb inflation without triggering a recession, a scenario often referred to as a "soft landing." Yardeni's initial year-end target for the S&P 500 was 4,600, a figure he now considers possibly too modest. He highlights the resilience of the job market, consumer spending, and industrial output, despite the Fed's rate increases since March 2022. With inflation showing signs of easing, Yardeni feels that there's no further need for rate hikes. He points to the flat October reading in the Coincident Economic Indicators (CEI) index, which reflects current economic conditions, as evidence of a cooling economy that's not buckling under higher interest rates. Yardeni interprets this as aligning with his "soft landing" hypothesis. Furthermore, Yardeni is excited about the potential of technological advancements, particularly in artificial intelligence (AI), to spur a productivity surge in the coming years. This, he believes, could usher in a period of significant growth and strong market returns, which he terms the "Roaring 2020s." Other financial experts share Yardeni's bullish sentiment. James Demmert of Main Street Research sees the end of both inflation and the Fed's rate hiking campaign, predicting a new bull market led by AI-focused stocks like Microsoft, Nvidia, and AMD. Solita Marcelli of UBS Global Wealth Management also expects the stock market rally to continue, citing a return to profit growth in the latest earnings season. Marcelli forecasts the S&P 500 Index to end 2024 around 4,700. However, Marcelli cautions that potential threats, such as resurgence in inflation, geopolitical tensions, and the upcoming U.S. presidential election, could disrupt the market. Any indication of inflation picking up might unsettle markets with the fear of more rate hikes, while international conflicts and domestic political uncertainties could add to market volatility. In summary, the stock market's future looks promising, buoyed by cooling inflation and the burgeoning impact of AI. However, investors should remain vigilant of potential economic and geopolitical risks that could affect market stability. Sponsor [New Customers earn 5.25% APY* (variable)]( Store your money with Cash Reserve, a high-yield account built for peace of mind. New customers earn 5.25% variable APY*—that’s 13x higher than the national savings rate. ** Plus, your money’s FDIC-insured up to $2M†at our program banks and no limits on withdrawals and transfers. **The national average savings account interest rate is reported by the FDIC (as of 5/15/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. [Sign Up Now!]( 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. 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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](