When today’s guest was last on this program in early February, he warned that markets were “in La La Land” — meaning they were too optimistic at a time the macro data was warning of an approaching recession.
Well, here we are, a quarter later and — after swooning for a month and a half — the S&P has powered back to exactly where it was when he gave his warning.
It’s in rally mode despite the macro data raising even more recessionary alarm bells — that, plus we’ve experienced several systemic scares since February, including the collapse of sizbale banks Credit Suisse and SVB.
Are the markets seeing true upside here that the bears are just missing?
Or are the markets simply seeing what they hope to see & ignoring reality, setting themselves up for a painful reckoning?
For a detailed exploration into these key questions, we welcome Alf Peccatiello, publisher of the Macro Compass and former bond portfolio manager, back to the program.