Good Morning,
TGIM! The unofficial start of summer is just around the corner with Memorial Day weekend approaching. It’s a time to gather with family and friends, while also remembering those who made the ultimate sacrifice—we honor them and say thank you.
Markets remain near all-time highs, as enthusiasm around AI and solid earnings have helped offset concerns over ongoing tensions with Iran and sticky inflation. That said, I wouldn’t be surprised to see some near-term volatility if a resolution with Iran is not reached soon. Rising oil prices are likely to begin impacting consumer spending as we enter peak travel season, especially with interest rates creeping higher.
The good news, in my view, is that the fundamental backdrop for the economy remains strong and supportive of further market gains, particularly if a clear and lasting resolution is achieved. This week, my primary focus is on Nvidia’s earnings report, scheduled for Wednesday after market close. If results once again exceed expectations, the AI-driven momentum likely continues.
Overall, I still favor a tilt towards value within stocks, which have outperformed and often provide insulation against volatility.
Attached is this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Please also take note of the following upcoming virtual client events being hosted across the Michigan region. Invitations are attached—let me know if you would like to RSVP:
Have a great week and enjoy the Memorial Day weekend!
Note: The market and our office will be closed Monday, May 25.