We are not buying it. This appears to be another bear market rally, and maybe it even makes it to the holidays or into 2023. With the S&P back to trading almost 18x forward earnings, which are being revised lower, the more this rally goes, the less sustainable it becomes. Not the least of which, if it goes too far (which may already be), financial conditions will loosen, countering the central banks’ efforts. And then they will say some not-so-nice things (more on Fed talk later).

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