Despite the stock market’s more than 10% rally over the last 2 weeks, it’s still far from certain that a new bull market has begun. So far, there has been some but not too much damage from the Fed’s rate hikes on employment and corporate earnings.
However, inflation has also remained stubbornly high which means these elevated rates will remain at least for the next 3-6 months. At this point, it’s likely that earnings will start to feel impacted and the unemployment rate should tick higher which would commence the next stage of the bear market.
