A 1970s wage price spiral and stagflation scenario keeps percolating.

Hi, Peter Navarro here with this week's market wrap for the very first week of 2024.

Let's start with the two most important observation of last week's market wrap.

First, I indicated that last week's market movements would not really matter much in terms of information about the market

trend. The likely bullish or bearish trajectory of the market in 2024 might be revealed

this week as the first week after the new year is often a

harbinger of the year to come. Here it is worth noting that going back to 1950, when stocks finish the first week of the new year higher,

the S&P 500 has been positive 82% of the time at year end of an average gain of 13.6%.

This according to stock traders almanac.

If that statistical past is prologue, the outlook for 2024 may not be good.

Stocks tanked on the first trading day and finished down almost 2% for the week.

Second, I told you that more than 90% of the 2023

gains for the S&P 500 were the result of only 20 tech stocks and mostly the so-called Magnificent 7 of Apple,

Amazon, Google, Tesla, Facebook, Meta, Navidia, and Microsoft.

The clear implication of this finding is that there is much more

uncertainty lurking below the surface of the rest of the American non-tech economy and

this is evident in a comparison to charts. The first chart, podcasters please

visit Peter Navarro.substack.com for the chart, is that of the S&P 500 as measured by the exchange traded fund spy

SPY for 2023.

You can see it is a bit of a roller coaster,

or one that takes a sharp move up beginning at the end of October for a total return of about 25%.

In contrast, the second chart is that of the Exchange Traded Fund SPYX, which is the

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