The S&P 500
is about to wrap up its best month since November, up more than 4% in January, while the Nasdaq Composite
is eyeing its strongest month since July, up more than 8%. But here comes February, with a Fed decision, big earnings and data right off the bat. And concerns that a recent rally is over already seems to be spreading across Wall Street and among investors.
Read: Investors who aren’t nervous right now should be, says Standard Chartered, Our contrarian call of the day from founder and editor-in-chief of The Kobeissi Letter, Adam Kobeissi is not buying any of that. “We have been bullish of equities, gold, crude oil, and bonds since the new year. Our view is that peak inflation is behind us, the Fed will begin cutting interest rates by the end of 2023, despite their previous statements that they won’t, and earnings expectations have come down significantly,” said Kobeissi, in emailed comments. Kobeissi thinks the Fed will indeed deliver on that interest-rate pivot in the second quarter. “This is why we have been bullish of the S&P 500 from 3900 and have a 4150 target, and we expect more strength in earnings over the next couple of weeks to lead higher,” he said. Read: Bear market unlike anything I’ve seen since starting on the Street in 1980, says short selling legend Jim Chanos Despite recession worries and “many reasons to fall,” the uptrend is there for markets such as crude, while stocks are in the same basket, he said. But don’t expect a straight line, rather more volatility ahead and a general uptrend over the next few weeks or so. “The reality is that markets are looking for a reason to rally. When markets are looking for reasons to rally, they usually find them,” h …