As the New Year turns

Equity market fireworks have heralded the first two weeks of the New Year as the S&P flirts with 5-year highs amidst a litany of economic issues that are all over the headlines. Financials are roaring, but if rates and inflation increase, this will mean huge margin pressure. Some of them and industrials are still resorting to cost-cutting and job elimination to make earnings estimates.  Earnings comparisons from last year will generally be bleak, but over-pessimistic analysts have probably made sure that the usual chunk of companies “beat” the number. No political fixes to anything have emerged. As the market climbs, I want to reduce long exposure. But let me also point you to two popular market forecasters for the coming year, one from Blackstone (here) and the other from Real Money (here). These guys have been doing this for decades !

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