Michele Schneider | Dec 27, 2023 02:32AM ET
One area I cover in my outlook for 2024 is the teachings of Raymond Lo and how he sees the upcoming Year of the Dragon.
A part of my comments on his analysis is based on this statement by LO:
“Many has the misunderstanding that the Dragon is glamorous auspicious animal and will always bring good luck. To the contrary, Dragon and Dog in the 12-animal system is called the “Gate to Heaven and Hell” or the “Net of Heaven and Hell”.
Hence, 2024 could see gains. We are agnostic and definitely looking to charts. Especially junk bonds HYG, small caps IWM, and retail XRT.
Interestingly, consumers whether you call it revenge spending or YOLO, are still very much in the game. Disposal income strong
With certain areas of inflation coming down-although still higher than what numbers suggest. The discussion of the rate hike cycle at the end is controversial
Statistically, there has been a major financial failure at the end of each rate hike cycle since 1965.
Currently, the catalyst for financial stress could be the rising debt, rising spending, geopolitical issues impacting supply chain, and a contentious election year.
And anything that gooses inflation will stop the Fed from cutting-
January 2024 will see a new 6-month calendar range reset-this will be very important this time with many predicting the end of the first quarter with a sell-off.
Although the stats are on the side of a higher market, this year of the dragon suggests some irritation that could turn the market on its side with more volatility.
17 Predictions:
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