Transcript:
Tom Vaughan:
Hello, everybody, welcome to Wednesday, the S&P 500 was up 1.45%. Today, lots of green on the charts really, really powerful day. What we’re seeing right now is sort of an adjustment from Canada’s negative outlook with some new information that’s coming out. That’s kind of adjusting that Outlook. So, for example, it seems like there’s a contest right now, amongst different analysts to predict the most number of rate increases that the Federal Reserve is going to do in 2022. I think that’s being led by, you know, Bank of America with a seven rate increases, many people projecting a half a point rate increase in March instead of the quarter point that would be expected prior to that. And so we’ve got all these scenarios going on. And people been worried and the markets been coming down, you know, in January. And then now we have two fed governors who came out today to do interviews, one of which was talking about really leaning towards three to four rate increases, which is exactly what they had in their report after the last meeting, unless, you know, they really saw something quite different. And leaning towards a quarter point in March, again, unless the data was quite quite different. And the other fed Governor talking about how they’re seeing some signs that inflation might be slowing in some areas. And again, you know, that would be a fantastic result for the stock market, because we’ve already baked in all a lot of this negative things. And so we kind of readjust.
So you take some readjustments on those negativity, you add in earnings, which been fantastic, Disney in a reported after hours, really good numbers, great numbers on their streaming, which is a big deal for them, their stock jumped after hours, 8%, which is a huge amount for a big company like Disney. And so, you know, again, earnings are driving things if they can, if earnings can continue to do what they’re doing, you’re talking again about some of the best companies in the world here that we’re investing in. And we’re also seeing some really a bounce up and some of the areas that got hit really hard. So the semiconductor arena, which we have a chunk in our models, got hit pretty hard this year, so far has been at the top of my list for the last two days within our model pieces was up 3.3% Today, actually, so really starting to catch up. And we’re seeing a lot of pieces that had been kind of knocked down the most coming up the most now. And so a lot of bottom fishing going on, in my opinion, we are definitely with a day like today, pushing off of that base that we created to kind of stop the slide from January and starting back up, be cut off often fall but we’re definitely in more of an uptrend now than we were before. So that’s also very positive on a technical basis. So look forward, see what’s gonna happen with the CPI inflation index number tomorrow, see how the market reacts to it. I will do my video tomorrow and give you my opinion on that. And I’m going to do kind of a special section in my show on Friday about inflation and kind of what I see. So look forward to talking to you then. Thank you