April showers, May flowers

This year there has been no sell in May and go away. Quite the contrary. But this has been due to the fact that the selling was done in April thanks to liberation day. Although equity indices are flat for the year, they have followed a very volatile path. And that is due to the high levels of uncertainty surrounding the US economy in the context of global trade. The technology companies have delivered strong results, but that was yesterdays news, since all that was prior to tariffs and negotiations. As we get into the summer, Wall Street still holds a positive expectation for the indices at year end, but they are surrounded by huge unknowns. The credit market continues to be quiet, and M&A activity is the lowest it has been in decades. That’s usually a prelude of a much more volatile second half. The bond market continues to send warning messages, alongside the U.S. dollar that have been ignored so far. The summer will bring Trump’s new tax plan, which is deficit accretive, and we’ll see how the market reacts to the big increase in deficits.

Want to know more? You can find all our posts at https://www.myfundamental.net/insights

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning

#policymistake #ratecut #stagflation