Hey Peter Navarro here with the latest podcast and Substack.

Why Cyclical versus Secular Stock Market trends

explain the 2023 bull market.

Confounding a whole slew of otherwise smart people running literally trillions of dollars in hedge and pension funds.

The US stock market, as measured by total return of the S&P 500 finished in spectacular fashion in

2023 while posting an annual gain of 27% including both dividends and price appreciation.

In the wake of this seeming inexplicable Biden bull, the passive investor, buying a hold crowd,

crowed that anybody who plays the market is a fool.

And the only thing for us retail investors that do is just buy and hold broad market indices

for years on end and just let your broker worry about it.

Fair enough if you just look at the results of this year,

but perhaps not so smart if you take a little bit of time to unravel the mystery of just

what bus hit so many in the hedge fund crowd who took massive, oftentimes leverage shorts of the S&P 500.

So let me take a crack of trying to unravel that mystery for you,

which you will see turns out to be no mystery at all.

The culprits such as they are in the murder of the shorts

are two full.

The first was a massive movement of funds from a far larger bond market into the S&P 500 beginning at the end of October

when both inflation and the yields on bonds across the yield curve began to decline

and all of the chatter about the Federal Reserve cutting rates aggressively in 2024 began.

Seeing this phenomenon and believing that the prognostications were correct,

that remains to be seen, investors hitherto worried about being caught in a bear market and enjoying relatively

...