The Grind---2/22/2018

To recap recent market events; after the election we saw the "Trump Bump" and the market rallied for over a year, essentially straight up, then in early February we saw a market pullback/correction.  Since then and over the last few weeks, the market has had fits and starts, rallies and then sells off, but, after an initial bounce from the lows, has gone nowhere.

Frankly, I think this could be the pattern for awhile.  At least until some economic data, or a series of economic data points, gives us a clear indication of what is going on.  You see, the rub right now is that the economy is doing well but the market is afraid that rising rates could derail this growth.  But no one knows for sure if it will.  So, one data point hits the market giving a good signal...and the market rallies.  Later that same day, another data point hits the market giving a bad signal...and the market sells off.

It is my opinion that until we have a clear signal that the market and company's bottom lines can withstand higher rates, we will see this grinding, go nowhere, action. 

Buckle up...this usually isn't a fun time for market participants.