Torsten Asmus
The equity rally should last at least at through the end of the quarter, and it could even extend beyond if there is a continuation of the 20-day highs among other internals, said Jeff Degraaf, Renaissance Macro Research chairman and CEO.
In a CNBC interview, Degraaf said that equities “should be money good between now and the end of the first quarter” of 2024.
The market (SP500), (DJI), (COMP.IND), (QQQM) has been giving a bullish message for about 16 months, he said. “We’re talking about the end of 2022, and it just continues to do well.”
The Bloomberg Commodity Index (DJP) is making a new low, he added. The index is down 2.36% from a month ago, down 1.55% year-to-date, and down 6.62% from six months ago.
Copper (HG1:COM) is down 4.13% year-to-date, and more than 2% from a month ago.
“That’s very consistent with the kind of playbook that we’re looking at right now, which is 1995 — the soft landing,” he said. “The Fed engineered that, and it’s been two or three years of uninterrupted gains for the equity markets.”
Degraaf also said that he prefers the S&P 500 (SP500) over the Russell 1000 (IWF) because the latter has been underperforming.
He said he doesn’t see the Russell 1000 (IWF) as vulnerable, but it is still in a base.
