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Fed Chairman Jerome Powell thought the U.S. economy was strong enough to roll with the Fed’s punches of higher interest rates, and a shrinking balance sheet without too much trouble. It was the outside factors — the Ukrainian war, China’s COVID-19 policy, and supply chain problems — that complicate the outlook.

I was dead wrong in my expectations that we could see a substantial rally in the stock market. Instead, we have dropped throughout the week as a barrage of interest rate hikes by central bankers throughout the world pressured stocks lower and the U.S. dollar higher. Plus Friday's spike in the CPI, And now we face the Fed next week.

Our politicians in Washington did what they do best this week by kicking the debt ceiling can down the road until Dec. 16. Until then, we can switch our focus to the Fed’s November decision on tapering its bond purchases. Does anyone have any Pepto Bismol?

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It has been a bumpy week for stocks, and it could get worse if you believe the headlines of the financial press. The issue I see is that just about everyone is expecting a nasty period ahead for equities. That makes me somewhat bullish.