Why are investors willing to embrace more risk even as broader markets slip? In this Seeking Alpha article, our founder & managing partner, James Demmert, explains that "Much of this 'risk on' stems from the Fed messaging that they have a handle on inflation — though there's no real evidence to support that. In many ways, this recent strength is reminiscent of the last three failed rallies in this bear market. In each case, sentiment became overly optimistic, as is happening now, only to be crushed by the reality that market fundamentals are not supportive at these prices. Stocks will move lower as investors recognize the Fed has much more work to do with raising rates — a market negative."
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