Economic Strength vs. Expected Corrections: my Weekly Market and Portfolio Review

February 4th, 2024 - Update

Here is my quick weekly take on the markets and my Portfolios.

I have been writing for months about the imminent recessions that have never materialized. It seems to me that the “problem” is that the US economy is still too strong and that might delay the time for the FED to start cutting rates.

Now, looking at liquidity, M2 is not decreasing anymore and has been stable for many months now:

It matters because the FED is not choking the economy anymore. The % of banks that are tightening their lending is trending down at this point.