By
wildpixel/iStock via Getty ImagesListen below or on the go on Apple Podcasts and Spotify
Fed Trader Chaim Siegel discusses fundamental and technical bullishness (0:35). CPI perfect numbers, Fed hiking, fighting inflation and bonds (4:00). This is an abridged conversation from a recent Investing Experts podcast. Transcript Rena Sherbill: Chaim Siegel, the listeners know you, you run Fed Trader. Oftentimes, you’re on here talking about macro topics. You were talking about how you were going to be bullish with some caveats at the very beginning of — or at the end of last year, you were talking about this year. How are you thinking about the markets based on how you were seeing them previously, and how are you thinking about them currently? Chaim Siegel: So, thank you for having me. It’s always a pleasure. I just want to backtrack, and I don’t think I’m doing something so fancy or anything. I think I’m just doing basic pro-trader look at the market, markets moving up, markets moving down, and keeping things simple based on a few simple data and facts that I constantly follow. And sometimes, I feel like the market gets swayed by the media or different news. And I think that there’s a couple of building blocks. I’m just getting to your question, a couple of building blocks that can keep you sane in following the market and not get you crazy. One is fundamentals. Two is technicals. And maybe under technicals, or maybe its own category, I call action. So, fundamentals, are earnings moving up? Is the economy doing well, right? That’s its own thing. Is the Fed getting in the way or not? Or is the Fed letting the economy go? That’s all called fundamentals, right? And, fundamentals, I think, are good, right? The economy is good. The Fed is not getting in the way and therefore, earnings are good. I was bearish on 2022. I flipped at the end of 2022 ahead of the big market run in 2023, getting bullish when I saw everybody was worried about recession, but I wasn’t, not that I’m a great prognosticator. I just like looking at the data and saying what’s going on now and I’m momentum oriented. So, whatever is going on now, I believe that that can continue. I mean, I don’t think we have many better indicators than just assessing what’s going on now, and is it realistic, it could continue. So, I saw that jobs were very strong at the end of 2022. And I said everybody is bearish, jobs are fine. I’m bullish. And the market had a good year. And coming into this year, I did see a couple of like geopolitics and maybe the Fed, mainly geopolitics as one of the big headwinds. Potentially, that could cause some bumps, but, I guess, as I saw that underlying fundamentals were good, the Fed wasn’t getting in the way of the market by not hiking and staying in they were really staying in a cutting stance even though they’re not cutting, they think they’re cutting, but they’re not cutting. And so, the fundamental part is bullish. Technicals have been bullish. And action, which is basically measuring just how the stocks act, meaning are they volatile or not has been bullish. I mean, stocks when they trade 0.5% or 1% every day up or …
See the entire article on inflation, or, read more Arizona real estate investing news. It’s your call!
