Good Morning,
I hope everyone had a nice holiday weekend. Congratulations to Indiana on their win over Miami to claim the college football National Championship! What a fun game it was to watch.
Markets opened down as tensions ratchet higher over Greenland. President Trump is threatening 10% tariffs across the board on imports from eight European countries starting February 1st, rising to 25% by June 1st if no deal is reached for the “complete and total purchase” of Greenland. In general, it’s tough to say how this will playout but markets become more volatile around uncertainty. This reminds me a bit of the Liberation Day tariffs announced in April of last year that produced a sharp decline but quickly recovered. We could also get a ruling by the Supreme Court as soon as today regarding the tariffs already in place. Again, a lot of unknowns for stocks to contend with near-term. Corporate earnings season heats up this week as well with reports from names including: NFLX, MMM, GE, and JNJ. We continue to see rotation and broadening in the market which Is healthy and I think will continue should rates come down over the course of the year. More value focused companies with higher cash flows, will likely benefit from this overall market set-up. Please continue to reach out with any questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great rest of the week!