Financial media pundits make a great deal of effort to convince us every day that either the Golden Age or the apocalypse will arrive tomorrow.

Neither of these scenarios has yet materialized. But that doesn't discourage them. On the contrary: the more uncertain the situation, the more the experts reiterate their extreme ideas, trying to take us one day in one direction and the other day in another.

After a few swinging weeks, the VIX finally returned below the 20-point level that divides normal volatility from the real "roller coaster".

Despite all the inflation, supply chain shocks, interest rates and all the other threats cited in the media, corporate earnings are expected to grow at an average of about 8% next year.

That's a figure that would normally be enough to drive the market as a whole up another 10-15% in 2022.

And in fact the strong rises that have followed the declines of the last few days suggest that Wall Street would like to be bullish, based on these prospects, but hates uncertainty and is therefore waiting for the right news to take a decisive bullish direction.

But why does Wall Street want, indeed need, to be bullish?

First of all, because it is difficult to find returns comparable to those of stocks and derivatives elsewhere.

Despite media scaremongering suggesting that we are about to return to the 1980s, when interest rates were running at double-digit percentages, the bond market is still not providing high returns.

The chart below shows the 10-year Treasury yield from 1980 to the present:
 
![IMG_20211212_081121.jpg](https://i.imgur.com/IWJqtIT.jpg)
 
As you can see, yields are still very close to historic lows, reached in March of last year at 0.318%.

And that insignificant rise you see on the far right is all the "interest rate reversal" prophets have to scare us....

It seems unbelievable that investors would fall for it. But they are...

Also, as we've mentioned before, Wall Street is pleased with the profits that companies are generating and are expected to continue next year.

Stocks in the S&P 500 continue to beat expectations in all sectors except utilities and industrial materials.

And if the U.S. economy is not to close significantly due to COVID, it is unclear why this trend should not continue.

Unless the Omicron variant proves to be truly virulent (which is highly unlikely, from what we know so far), good news such as federal government funding, raising the debt ceiling, strong vacation spending, etc. will keep the stock market indexes in their long-term bullish channels.

But will this be enough to calm the media and allow the so-called "Christmas rally" to begin?

Thanks for reading

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