Mid year analysis

The first half of the year is gone. Today the second half starts, and investors have multiple reasons to not invest in financial markets: inflation higher than expected, high valuations, geopolitical conflicts, bombings, high energy prices, to name a few. And yet, if you look at the Fund@mental market monitor below, you can see that equity indices (represented by investable ETFs) are for the most part, on green territory. The S&P500 is almost 10% up for the year, and the Nasdaq almost 20%. South Korean KOSPI (not in the table) has almost doubled YTD. Only 4 indices in our monitor are down for the year, and we can argue that only 2 are meaningfully negative YTD. What are the prospects for the second half? We have a new chairman at the Fed that believes inflation is a choice. We have a fragile MoU that promises to reopen Hormuz. We have the mid term elections in the U.S., and we don’t have oil available for everyone. We continue to have private credit worries, and hyper scalers cash flow shortages when it comes to AI investments. We have the pending IPO of OpenAI, and we have the Japanese Yen above 162. Can we continue to absorb the uncertainty and the volatility and continue to climb the wall of worry?

Want to know more? You can register for free at Fund@mental.

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning #policymistake #ratecut #stagflation