Good Morning,
I hope everyone had a great weekend. Believe it or not, it looks like we’re in for a relatively dry week!
Markets opened slightly lower this morning after setting new all-time highs last week. Optimism around a potential resolution with Iran and the continued free passage through the Strait of Hormuz remains uncertain as peace talks faltered and Iran moved to reassert restrictions in the Strait. On Sunday, the U.S. seized an Iranian cargo ship in the Gulf of Oman after it ignored warnings to turn back.
As noted over the past few weeks, this remains a very fluid situation and warrants patience from an investment standpoint. The resilience the market has shown remains a positive tailwind, in my opinion, as we move through Q1 earnings season. Approximately 94 companies are scheduled to report this week, followed by another 186 next week. While momentum is highly headline-driven in the near term, the underlying bull case for equities is likely to be supported by earnings outperformance.
I continue to favor the value narrative, which has outperformed growth so far this year. As always, please feel free to reach out with any questions or comments.
Attached is this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management.
Have a great week!