Navigating Volatility: The Ripple Effect June 28th, 2023
The stock market has experienced a strong start in 2023, but as we approach the end of the second quarter, warning signs are beginning to emerge. In this blog, we will explore the current state of the economy, market sentiments, and factors influencing volatility. Join us as we dive into the world of finance and discuss what you need to know for June 27th.
It’s the Economy Stupid;
Political analyst for Bill Clinton famously said its the economy stupid. All the experts were pointing out wedge issues, and minor details which were moving the polls this way or that way. The economy was key and all else sat on the sideline. 2023 has been the year of its the economy stupid. Jobs remain strong, the consumer remains strong, the housing market remains strong. And we have a transformative technology which is leading the way to productivity and innovation in AI. as long as the economy stays strong, the market can remain resilient.
- Tech mega caps lead the rebound in equities on Tuesday, with Nasdaq 100 up by almost 2%. Semiconductor nearly 4%!
- Highlights of notable company movements, including Tesla, Snowflake, Meta Platforms, and Alphabet.
Contrarian indicators remain.
- Bullish sentiment.
- Excessive Call buying
- Low Volatility
What to watch for
- Consumer confidence and its impact on stock prices.
- The labor market’s influence on consumer spending and inflationary expectations.
- There is now nearly an 80% chance according to economists of a fed hike at their next meeting. Is this priced in?
As we navigate the current market volatility, it’s essential to stay informed about economic trends, market sentiments, and upcoming events. By understanding the ripple effect of various factors, we can make more informed decisions regarding portfolio management and investment strategies. Stay tuned for our next update, and let’s ride the waves of volatility together.