The technology stock rout that began the year has carried over into the broader market as we head into the final trading week of January. This has accelerated as a few key concerns have converged—tightening by the Federal Reserve, rising oil prices, slowing growth in China, geopolitical risks, mid-term election worries, and the inflation cost equation.

In our year-ahead Investment Strategy Overview report—The Great New Dawn, we outlined a market thesis that included higher volatility, a grind-it-out type of pattern that’s likely to incur larger pull-backs than occurred in 2021. We call this a “buffalo market”— still in the bull family but tending to roam more, get spooked easily, and less attractive overall, but in a positive uptrend. In addition we see what can be considered meerkats—shorter-term “active risk” investors who tend to hide out and burrow in the ridge at the first sense of danger.

We believe the meerkats are about ready to end their burrowing as the realization takes hold that profits are still strong and some of the concerns well discounted. We expect this to help bring down the spike in volatility and foster occasional rallies.

(http://www.autoadmit.com/thread.php?thread_id=5015836&forum_id=2#43840299)