There certainly is a lot of things going on with the market these days. Every day there seems to be a new headline, whether it's the Dow dropping in May or the rally this past week.
There are a few main drivers of these swings, including the countdown to the Trump-Xi meeting at the G20 event and if there can be progress made on U.S.-China tariff conversations. There is also wide expectation that the Federal Reserve will cut rates significantly in the near quarters to come.
If you look at JP Morgan's weekly market recap, you can see the wide dispersion between what the Fed thinks it's going to do for rates as compared to what the market's expectations are. The disparity gives us the opportunity to make trading calls, and also sets up the market for volatility. In the same breath, the tariff talks could wreak even more havoc on market volatility.
There are many things to watch for in the days and weeks to come. Regardless of how the market shifts, this is not a time for knee-jerk reactions. Making quick, emotion-driven decisions during a volatile event has proven to not be in the best interest of your portfolio returns over the long run.
All stock market news aside, all of us at CAISSA wish you and your family have a safe, fun Fourth of July holiday.
-Kelly Pedersen
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