Today there were two big news items that impacted both the stock and bond markets, and to me, they are condictory and show how lemming-like investors are.
First, jobs data came out with top-line print very positive and the news assessment was – no recession in sight.
Second, FED chair Powell spoke and stated that FED will be patient with rate increases (not said, because markets are spooked that recession / slowdown is nearer than originally thought).
How can both of those prompt one to invest more into stock market? Either growth is or is not slowing – can’t have it both ways.
Just in case you want to ask … I am selling into the rally and buying 3month T-Bills. I remain in trading / capital preservation mode and new investments are valuation driven (no more FOMO!)
Later comment – MarketWatch posted something very similar to what i said https://www.marketwatch.com/story/jobs-report-shows-the-fed-is-not-done-raising-interest-rates-2019-01-04