Last week we talked about the market potentially preparing us for a volatile second half of the year and it looks like that’s certainly the case.
Growth, inflation, the Federal Reserve. The Big 3. The market continues to struggle with expectations concerning the Big 3 which has led to this rotational market throughout all of 2021 that we have discussed in depth. During these periods of uncertainty, volatility generally rises, and interest rates generally fall which is exactly what we are seeing.
But we also need to keep in mind that markets do sell-off and you should expect at least 5% drawdowns a few times a year. Could this be the start of one?
For the week ahead, second quarter earnings season really starts to pick up steam this week. What effect will this have on the current market environment? With the market becoming more defensive, does earnings season become the catalyst to move the market higher or does it just add to the volatility?
This has been your Weekly Market Minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below: