Why Wall Street Fear Is Fueling the Next Bull Run

Wall Street Fear Could Push Stocks Higher, Says Popular Newsletter Editor

Stock futures slipped as the fourth quarter begins under a government shutdown and without key jobs data. But one closely watched market voice says nervous investors may actually be setting the stage for more gains.

The anonymous author of Lord Fed’s Gazette — Substack’s 13th most popular finance blog — argues that Wall Street’s so-called “smart money” remains too skittish. That hesitation, he says, will only give the S&P 500 more room to run.

Lord Fed’s calls have been on point before. In August, he predicted the index’s move to 6,500 would launch a new leg higher. By September, the S&P had logged eight record closes in a month and 23 for the quarter.

But hedge funds are still blinking. Goldman data shows managers cut tech exposure at the fastest pace since August as the S&P neared 6,700 — even after sitting out most of the rally. “They’re selling into strength because they’re convinced this is the top,” Lord Fed wrote. “That’s not how tops happen. That’s how bull markets extend.”

His bottom line: fear is fuel. And after the latest round of selling, his 7,000 target for the S&P looks more likely than ever.