But what exactly is driving this rally and is it really justified by the economic fundamentals? Peter breaks it down in a recent podcast and concludes that this is likely a bear market rally.

June was a fantastic month for the stock market, particularly the NASDAQ, which was up 12.8%. The S&P 500 charted an 8.3% increase. The Dow Jones finished up 3.4%.

The strong June helped power stocks higher through the first half of 2022. The S&P 500 was up 15.9% through the first six months of 2023. That was the best start to a year since 2019, during a period when the Federal Reserve was cutting rates.

Now we've had a bigger rally even though the Fed hasn't even started cutting rates yet. It's still hiking rates and indicating it's going to hike some more — we still got this big rally. And I think it's because the markets don't really believe the Fed. They know the Fed is likely near the end or done hiking, and so that is the relief rally."