Why the Fed will soon inspire a strong market rally

Happy Saturday! I hope you had a great week. Although unfortunately the stocks certainly didn’t.

The market ended a tough week on a sour note after receiving the weak August jobs report. The data broadly missed expectations and reinforced concerns about a weakening labor market and potential recession. And that led S&P 500 to have the worst week in more than a year. At Friday’s close, the index was down about 2% on the day.

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But here’s our take: Don’t stress sales. Instead, get ready for a massive market reversal – because evidence suggests one is coming in just two weeks.

This might sound absurd given how fearful investors are of a potential recession. But it is important to note that the current economic figures not we suggest we are already in a collapse. The US economy continues to create jobs. The unemployment rate remains low. Gross domestic product (GDP) and consumer spending are both still positive.

Rather, current economic trends are what lead people to believe that a recession is imminent. It is true that the economy is weakening; no doubt. And if these current trends that we are seeing persist, we would fall into a recession.

But we are confident that, thanks to the Fed, these trends won’t persist.

Even better, it looks like a sustained rally is just around the corner.