And Now For Yet Another Hated Rally

DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Read our full disclaimer, here.

Market On Open, Friday 10 April

by Alex King, CEO, Cestrian Capital Research, Inc.

I am not sure why people hate rallies. I think it might be just terminally online people that hate them. Normal people like it when number go up. Folks brandishing their smarts on X, YouTube and elsewhere prefer to say “because of the underlying factor X of which you plebs are unaware, the market is about to dump and you dummies are going to be left holding the baby”. And then when a correction comes along, to declare themselves right all along. Exhausting.

Anyway, I think equities want to go up. Crypto has held up, climbed even, through the war in Iran, and stocks didn’t really dump as much as they might have done. Stocks seem to be resilient and can absorb abuse from the oil price, coming food inflation and everything else. I suspect that is because large, price-setting accounts know that financial conditions are improving under the surface. The Fed is, I believe, going to cut into this inflationary headwind, because the inflation is supply-side driven. Money center bank capital requirements are lightening up. Cheaper and more easily available money will find its way into risk assets. This will end, as all phases do, but I think up is the dominant direction in the coming months.

Get Help

If you’re one of our many thousands of free readers, thankyou - we try to produce a goodly amount of no-paywalled content and we hope it’s useful.

We’ve introduced an exceptionally low cost service as a way to get some of our best premium content for very little outlay. It’s called Cestrian Circle. It’s a big leap to go from reading free material to paying, we understand that, but we think this service is exceptional value. You can learn more here.

Alright. Let’s take a look at markets.