Here's why it is so easy to get blind-sided by markets.
What used to be a catalyst for markets can suddenly turn into a cause for concern. Many were looking forward to the first rate cut from the Fed, and when it finally looked like a certainty, growth concerns suddenly materialized.
When markets were worried about rate hikes, weak economic numbers were cheered because it lessened the likelihood of rate hikes. Now that markets look forward to rate cuts, bad news becomes terrible. This is because the market fears that the Fed is now cutting to fight an oncoming recession. This is the reaction we are getting from the unexpectedly poor non-farm payroll and unemployment rate.
This is why I do not pay much attention to economic news. I prefer to look for evergreen rules that govern markets and trust price action.
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