Andrew Z believes that the economy, especially the job market, is looking highly favorable. As a result, wage inflation is happening and therefore the Fed is more likely to raise rates than to leave them unchanged. Spending is going up and so are real wages for the first time in decades. Therefore, the market was overtaken by fears of higher rates and less spending. However, these fears might have been overblown. In any event, it’s not over yet. Volatility is the byword.