Markets could have terrific setup if consumers spend over the holidays: Capital Wealth's Simpson

Market Sentiment & Risk Assessment - Post-election, the market exhibits a "risk-on" sentiment, though a broad market pullback of 5% occurred [1][3] - Tech stocks are leading the market recovery, emphasizing the need for these companies to deliver strong earnings [2] - Consumer spending during the holiday season is crucial for market performance at the end of the year and the beginning of next year [2] Federal Reserve & Interest Rate Policy - The Federal Reserve's actions in December regarding interest rate cuts are a significant point of debate [4] - The impact of the Fed's decision may be more short-term than intermediate to long-term [5] Investment Strategies & Stock Performance - Caterpillar was added to the portfolio after being stopped out of Honeywell, reflecting a continued focus on the industrial sector [6] - Microsoft was added to the portfolio after a 17% pullback from its highs, reaching its 200-day moving average, highlighting a mega AI theme investment [6][7] - Many stocks were trading down 20-30%, indicating a healthy market correction beneath the surface of V-shaped bounce [4]