No light at the end of the Fed’s tunnel

A lot changed last week and not for the better, says Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers.

“The markets are incredibly oversold, and a bear-market rally could certainly play out, but I’m much less apt to trust any rally until there’s some sort of change in tone from the Fed,” he says. “Right now I don’t see how they are being data-dependent in any way, shape, or form.”

So investors should remain very cautious, Orton says, “but that doesn’t mean to throw in the towel. It might not be time to hit the ‘buy’ button, but it’s also not the time to hit ‘sell.’ There are parts of the market that are working better on a relative basis and that’s why tactical shifts are so important as the market narrative continues to evolve.”

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