The Market Chess Crew Takes on Steroid Roy

Dip-buyers have been in "Steroid Roy" mode for over a decade now, raging into any dips, crashes, corrections to risk it all and sprint the tape back higher. 

However, seeing Professor Jeremy Siegel on CNBC this morning lamenting the resilient economy as being much stronger than he expected drives home the point we are now in a new regime, as even he struggles with that concept. 

Last decade, an economy limping along allowed The Fed to stay easy without us also crashing into the abyss. 

This decade, a resilient economy and sticky high inflation postpones any Fed pivot and likely means higher rates for longer, which means most stocks are currently grossly overvalued. 

You will also note how many folks are smitten with the idea of calling a bottom in bonds and top in rates. Full disclosure: My largest trading position by size with Members right now is an ultra-short TLT ETF (long TBT). 

That said, I have been consistent since at least 2021 with the idea that stocks and bonds will dip in unison in this new regime. 

All of this has me feeling like Detective John Kelly in NYPD Blue in the clip below taking on Steroid Roy.