S&P 500 continues to selloff, pricing the anticipated Fed-induced growth recession. The Fed Chair Powell stated at the Jackson Hole Symposium on Aug 26th that the Fed intends to increase interest rates to a restrictive level and keep them there for “some time”, which is likely to produce a sub-trend growth for “some time”. This “growth recession” requires the downgrade of corporate earnings and increases the probability of a real recession, or a negative growth. The outlook for S&P500 is bearish as long as this theme holds. Here is the full report: