Stocks form a cornerstone of long-term investment strategies, historically generating wealth and helping investors reach their financial objectives. Yet investors often concentrate on large-company stocks, overlooking other market segments that could enhance portfolio diversification.
May delivered strong market returns as the S&P 500 erased its year-to-date losses despite significant fiscal and economic headwinds. The month featured a historic U.S. credit rating downgrade, advancing trade negotiations, and mixed economic indicators that created both challenges and opportunities for investors. Consumer sentiment remained subdued even as corporate earnings showed strength and inflation continued to moderate. Treasury markets experienced volatility amid federal spending debates, yet equity markets demonstrated remarkable resilience in the face of policy uncertainty.
What's the data telling us? I’m going to compare hard and soft economic data to understand the current state of the economy. There is a growing disconnect in economic data, as ‘hard’ data has been solid, while ‘soft’ data has been weaker.
Investors are caught in a tug-of-war between the fact that this drawdown is largely self-inflicted and could be reversed quickly versus the risk that the White House digs its heels in and continues the trade war, with the potential for additional sector-specific tariffs.
Understanding the drivers behind GDP growth can help put short-term economic uncertainty into perspective for your overall financial planning. The recent negative GDP figure is a notable shift from previous quarters' growth, but there are a few key reasons...
Taking a longer perspective reveals that despite recent swings, the stock market has still made significant gains over the past few years. Amid ongoing market and economic uncertainty, it’s important for long-term investors to not lose sight of this fact.