Wall Street is breathing a sigh of relief after the S&P 500 Index managed to eke out its first weekly gain of the year, CNBC reported. Despite the signs of strength, one prominent market watcher says stocks are still in store for a “thundering reset.” “I think we have a dead cat bounce in no-man’s-land,” former US politician David Stockman told CNBC’s “Fast Money” last week. According to Stockman, the broad market has been trading in the abyss since breaking above 1,870 in 2014, seeing a meager 1% return since then. “We’re been there now for 700 days…we’ve had something like 35 attempts at rallies and all of them have failed for what I call the “four no’s”,” he added. For Stockman, those “four no’s” consist of a combination of no escape velocity, no earnings growth, no dry powder from the central banks and no reflation. Taken together, it leads him to believe the US economy is on the cusp of a full-blown recession.
