The Week Ahead 2026.02.16

Bob Elliott · Nonconsensus · February 16, 2026 at 23:06 · ⏱ 2 min read  | Read on Substack ↗
Summary
=== SUMMARY ===
  • The author maintains a bullish, pro-growth stance on the US economy, viewing the recent stock market dip and bond rally as a likely overreaction not supported by fundamental data like strong employment.
  • The author identifies a key upcoming event: a Supreme Court ruling on Trump's tariffs, with insider odds suggesting the tariffs may be struck down, creating opportunities in affected sectors.
  • The author highlights the significant outperformance of developed markets (ex-US) versus US markets year-to-date and expresses skepticism about the narrative of strong foreign investment flowing into the US.
Summary
The author highlights a disconnect between market behavior and economic data, noting that US stock and bond markets reacted to a perceived negative growth shock last week despite strong payrolls figures. The upcoming week's hard data is positioned as a critical test for this pessimistic market sentiment.
  • US stock and bond markets reacted as if a negative growth shock occurred last week.
  • This market sentiment contrasts with recent positive payrolls data.
  • The author anticipates that new hard data in the upcoming week will challenge the market's pessimistic view.
Read time 2 min
Length 2,161 chars
Category finance
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