Bull-Bear Brawl

Americans keep spending. Despite the inflationary pressures which seemingly lead to a path towards recession, Americans keep spending. The Consumer accounts for nearly 70% of the US Economy. It matters big time. The elevated spending is keeping the Market and the Economy afloat. This is not recessionary behavior. The Stock Market had another wild week, as it tries to anticipate 2023. The Fed Chair put a charge into stocks on Wednesday when he indicated some slowing of the aggressive rate hike campaign could be ahead. Bonds rallied too as yields fell. He said a soft-landing is still doable. It's all tied to inflation and jobs. November closed with a powerful rally, marking a 5% gain for the S&P on the month. In fact, it posted back-to-back monthly gains for the first time since August of 2021. It didn't last. The November Job Report put a dent in the rally. But a midday reversal Friday made it barely noticeable.