Good Morning,
I hope everyone had a great Memorial Day weekend! The markets opened significantly higher this morning after President Trump delayed a proposed 50% tariff on EU imports from June 1st to July 9th. I think time in the market rather than timing the market is crucial in this political environment as momentum swings happen quickly. This week we get some key inflation data and the FOMC May meeting minutes. Fed intervention, in the form of interest rate cuts, remains a fluid topic up for debate. I still anticipate 2-3 cuts over the duration of the year though, the timing has been pushed back. Q1 earnings have largely outperformed expectations with many wondering if Q2 (reporting in July) with show a greater slowdown. With that said, I like being selective here within stocks but see it as a good time to layer in more growth coupled with some quality fixed income positions. If rates come down later in the year, I think the momentum trade will intensify.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management. A look at “Where We Stand Now” and growth vs. value, are among the topics.
Have a great rest of the week!