MDM will resume its BUY signal.
The mini-correction did not materialize into something worse despite huge volume reversals on Nov 20. The rate of global liquidity looks to increase after a brief pause. While Powell may be hawkish on Wednesday, this does not change the 3 rate cuts predicted for 2026, subject to change, of course, on incoming data. If the economy shows continued signs of strength, then fewer cuts, though Hassett who is likely to take Powell's place is a dove so more aggressive cuts could be back on the table once he is appointed in May 2026, plus markets are forward looking by typically 6-9 months. If the economy shows weakness, expect more cuts. Either way, with the healthy rate of global liquidity at hand, odds favor higher markets overall.
Leading groups such as Uranium, data center, precious metals, and big tech stocks look to be rounding out their bases or at or near new highs such as big tech leaders AVGO, AAPL, GOOGL, and TSLA.MSFT, META, AMZN, NVDA corrected 10–20% since Oct 30 because:
Earnings reality check: Massive capex spending not yielding proportional ROI yet
Valuation reversion: 42x earnings for tech can't sustain forever; Goldman warns multiple compression ahead
AI bubble fears: 45% of fund managers now view AI as top tail risk (up from 33%)
Fed rate uncertainty: Rate cuts delayed; expensive growth stocks suffer; his testimony on Dec 10 likely hawkish
Technical breakdown: Moving averages broken; momentum flipped bearish
Investment Takeaway: This is healthy correction, not crash. Mega-cap tech has further downside risk if Fed stays hawkish when Powell gives his testimony on Dec 10 or AI ROI disappoints. But long-term thesis (AI infrastructure value) intact.
Caveats:1) Dec 10 hawkish testimony by Powell
2) Bank of Japan rate hike likely on Dec 19 (markets pricing 89–90% chance via Polymarket) but expect at most a muted 1–2% global dip (vs. Aug 2024's 10–13% crash) because markets are fully priced for a hike (89–90% odds).
Suggested ETFs (Note: Many members buy the standard ETFs or their preferred ETFs. This list serves as a guide as to which ETFs we think may outperform, but the key point is to be on the right side of the market regardless of which ETF or ETFs one chooses.)
1-times
SPY (S&P 500)
QQQ (NASDAQ-100)
2-times
SSO (S&P 500)
QLD (NASDAQ-100)
3-times
UPRO (S&P 500)
TQQQ (NASDAQ-100)
TECL (Direxion Trust Technology)
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.