📈The market has adapted to the possibility of fewer rate cuts and has shown resilience.
📉Expectations around Fed policy and movements in bond yields may drive shifts in market leadership.
💥Volatility could increase due to election political risk.
📅The market has adapted as the expectation of rate cuts decreased.
💡Sentiment is on the frothier end, but it is not necessarily a trigger for selling.
Will the market continue to reach new highs in Q2?
—The market has shown resilience and has adapted to the possibility of fewer rate cuts, suggesting that the record may continue in Q2.
What factors may drive changes in market leadership?
—Expectations around Fed policy and movements in bond yields may drive shifts in market leadership.
How may election political risk affect the market?
—Volatility could increase due to election political risk, making it a potential driver of market movements.
Has sentiment reached extreme levels?
—Sentiment is on the frothier end of the spectrum, but it is not necessarily a trigger for selling. Extreme sentiment levels can serve as contrarian indicators.
Will the market be affected by Congress divisions in relation to proposed policies?
—The likelihood of proposed policies turning into actual policy may be limited by divisions in Congress, regardless of the majority.
00:00The market has adapted to the possibility of fewer rate cuts and has shown resilience.
00:12Expectations around Fed policy and movements in bond yields may drive shifts in market leadership.
00:34Volatility could increase due to election political risk.
01:00The market has adapted as the expectation of rate cuts decreased.
01:03Sentiment is on the frothier end, but it is not necessarily a trigger for selling.
