Coming into 2022 versus now, by WFC strategist
We thought you needed multiple compression. You got that. We thought interest rates and especially real rates needed to normalize. You got that. We thought that the Fed had to get motion, whether it's related to the balance sheet or to raising rates. That's been happening. Now we have a 15 or 20% pullback depending on where you look in the market.
Two last things we needed to see: We needed to see rates come down, and we needed to see some softening of the Fed rhetoric, which is what we seem to be seeing in the short term.
We're not seeing indiscriminate selling as in the last few weeks.