Current market mentality:
1. Inflation is LOWER than expected: “Buy stocks, a Fed pivot is on the way.”
2. Inflation is AS expected: “Buy stocks, a soft landing is on the way.”
3. Inflation is HIGHER than expected: “Buy stocks, AI is changing the world.”
Even as 3 rate cuts have been removed from forecasts, the S&P 500 has already hit 16 all-time highs in 2024.