Will and Adam provide an update on the continued fallout in the banking sector, including what it means for consumers and markets. The surprising rebound in technology stocks despite a nascent banking crisis is also analyzed and compared to what we experienced during the financial crisis. We also debate what the opposite of inverted is and why it is important to our outlook for the economy. For even more, click here to read Will’s comments on Silicon Valley Bank in Barron’s.

We look at the self-proclaimed new Nasdaq, a.k.a., Ark, as emblematic of the ferocious return of speculation in 2023. We also look at the behavior of meme stock speculators and debate the role the Fed may or may not in fomenting speculation as it (and we) debate how restrictive policy is versus how restrictive it needs to be.

Will and Adam discuss the challenges faced by the Fed as it sees financial conditions easing despite its efforts to restrict monetary policy. We also analyze the health of the consumer in the world of high interest rates, low savings rates, and increasing levels of debt. The unprecedented collapse in money supply growth, and the recent spike in velocity, are addressed as well.

We review a challenging 2022, capped off by a December to forget for those looking for a Santa rally. The causes (Fed policy, rampant retail speculation) and effects (multiple compression, sizable capital losses) are analyzed, along with some perspective on how we are preparing for 2023.

We give an enthusiastic meh to 2022, an anomalous year in so many ways: stocks and bonds both lower, the Fed raising rates at a historic pace, and geopolitical turmoil. We also delve into the Fed’s inflation versus recession conundrum, the consequences of capital once again having a cost, and what 2023 may hold based on our top-down process.

We review the tumult in the crypto markets in the wake of FTX’s demise. The markets resilience in the face of crypto, geopolitical, and inflation headwinds is another topic of discussion. We also look at the technical indicators pointing toward a recession here in the U.S., as well as the market implications of a Fed pivot.