Everyone was calling for a recession this year. Now the odds are basically zero. Bears are running out of things to say.
Posts show a supportive 30-day stance (score 59) driven by strong earnings and technology sentiment, while policy and geopolitical scores remain adverse. The latest shift shows technology and positioning scores declining from earlier peaks, with hedge fund selling and Anthropic weakness contrasting with robust AI infrastructure demand.
Posts highlight a resilient US labor market with jobless claims at 197k and strong PMIs, but consumer strain persists with record-low sentiment and housing affordability. Authors note wealth concentration and AI-driven inequality as counterpoints, while recession odds remain low.
Posts show the 10-year Treasury yield near 5.3%, a 2002 high, with hot September CPI (3.7% y/y) doubling October hike odds to 40-60%, though Warsh's silence cut them to 14%. Some argue higher yields reflect AI productivity, not inflation, while others warn of a supply shock misread and equity drawdown risk.
Posts highlight a strong Q3 earnings season led by TSMC's record profit and raised guidance on AI demand, with ASML also beating and signaling supply shortfalls. However, bank earnings diverged, with Morgan Stanley and BofA falling despite results, and Dell's worst week since 2018 on memory shortages.
Posts show AI infrastructure demand remains robust, with ASML record Q3 revenue and Lumentum sold out through 2029, while memory shortages persist. However, Anthropic's weak growth data and lower IPO valuation triggered selloffs, with skeptics questioning ROI and token prices down ~50%.
Posts show extreme fear after hedge funds sold equities and VIX spiked, but dip buyers cite historical post-midterm gains; breadth remains narrow with only 30% of SPX constituents outperforming.
Posts show US-Iran tensions dominate, with Trump rejecting ceasefire but signaling more talks, while markets eye midterm-driven outcomes. Counterpoint: some see geopolitical risks fading, with deregulation and Brazil elections supporting sentiment.
| Topic | Sep 18Sep 24 | Sep 24Sep 30 | Sep 30Oct 6 | Oct 6Oct 12 | Oct 12Oct 18 | 30 Days |
|---|---|---|---|---|---|---|
| Economic Growth | ||||||
| Policy & Liquidity | ||||||
| Corporate Earnings | ||||||
| AI & Technology | ||||||
| Risk Appetite | ||||||
| Geopolitics |
Everyone was calling for a recession this year. Now the odds are basically zero. Bears are running out of things to say.
Michigan's current-conditions gauge just hit 44.7, the lowest on record. The S&P closed Friday just under its all-time high. That is not a disconnect. Gas and borrowing costs tax the bottom; asset prices pay the top. A December hike lands on the half already paying. $SPY $XRT https://t.co/Gyh24mv0Ge
October @UMich Consumer Sentiment fell to 46.3 vs. 47.6 est. & 48.1 in prior month; current conditions down to 44.7 vs. 50.1 est. & 50.9 in prior month; expectations up to 47.3 vs. 45.7 est. & 46.3 in prior month https://t.co/BRcTwWzXnN
ABSOLUTELY INSANE… The richest 10% own 75% of global wealth. The poorest HALF owns just 2%. Even crazier: fewer than 60,000 people own THREE TIMES as much wealth as that entire bottom half. In the US, the richest 10% hold roughly 69% of household wealth. The bottom half holds just 2.3%. And IMF research warns AI could widen the divide further by boosting returns for people who already own assets. That’s what worries me: the same technology making a business more profitable could put its employees’ wages and jobs under pressure. The economy getting richer doesn’t automatically mean YOU are getting ahead.
Initial jobless claims down to 197k vs. 200k est. & 198k prior; continuing claims at 1.719M vs. 1.740M est. & 1.717 prior … greatest increases in CA (+2.5k), HI (+1.5k), & NY (+1.1k); greatest decreases in MA (-0.5k), AR (-0.3k), & KY (-0.3k) https://t.co/AVczsrsUeg
Answer: Our current expectation is that this secular 🐂—which began back when I first got admitted to Wall Street—peaks in 2H27-1H28. If we’re wrong on this view, then that is precisely what KISS and Dr. Mo are for—in either direction. Details here: https://t.co/LVQS25KHdx.
Yes, I think if we lose $270, then it means the market is actively trading the recession risk.
Narrative violation: Gen Z is out-earning what millennials made at their age Adjusted for inflation, zoomers earn 20-40% more than millennials did a decade ago, at every income level Charts of the Week: https://t.co/mdb37dD2sk https://t.co/6LRxMZjPUG
US households hold over $60 trillion in stocks and mutual funds, more than 3x a decade ago. The richest 1% owns 54% of it. The bottom 50% owns about 1%.
On a three-month moving average basis, retail sales growth for restaurants and bars increased 1.0% in October, marking its strongest growth rate in more than a year https://t.co/IaR1flDT2Q
CEO confidence declined in 4Q26, falling 6 points to 46 to its lowest level since 2Q25 … the drop in optimism likely reflects rising geopolitical tensions and higher oil prices, according to @conferenceboard https://t.co/rWqPytnGvw
Initial jobless claims up to 199k vs. 200k est. & 198k prior; continuing claims at 1.710M vs. 1.709M est. & 1.714M prior … greatest increases in CA (+4.3k), IL (+1.1k), & NJ (+0.9k); greatest decreases in HI (-0.3k), MI (-0.1k), & IA (-0.1k) https://t.co/4Q2wJwShpf