There will be few places to hide when the next down leg of the bear market begins.
So cautions highly-respected former hedge funder Thomas Thornton.
Moreover, he thinks those anticipating a Fed pivot soon will likely be disappointed.
He does not see the Fed being able to change its policy course until inflation’s been brought under control or there’s real panic in the system.
And with inflation at a hot 9.1%, the S&P at a comfortable 4100, and the unemployment rate still near record lows, he just doesn’t see the Fed feeling forced to reverse course anytime soon.
So he thinks the Fed will allow the markets to cool further, perhaps substantially so, provided it happens over time and not all at once.
For his outlook on just how low they may go, watch today’s interview with Thomas Thornton.