Deciphering Market Indecision: Inflation, Technology, and Stocks

Update September 4th 2023

The market was closed today so we’ll have a shorter trading week.

The equal weight Sp500 ($RSP) is still trading within a range after the failed breakout in August:

We keep experiencing an indecisive market bouncing up and down based on recession and inflation fears.

The biggest concern is about a US economy that becomes too hot while inflation has not approached the 2% target from the FED. If that happens, then the FED would keep interest rates “higher for longer” or even higher from current levels (more hikes) which would send stocks lower.

This is the difficult environment we are in. Here is my take in a nutshell:

• I believe we are living in transformational times where technologies like AI, robotics, Solar, Electric vehicles, software, etc. will bring productivity and wealth;

• We are navigating uncharted waters as we are coming out from a pandemic shock …