Why investors should be 'a little more cautious' on geopolitical risks
JonesTrading chief market strategist Michael O'Rourke joins Morning Brief to provide insights into market dynamics, addressing economic expectations and escalating geopolitical tensions in the Russia-Ukraine War. O'Rourke recommends Treasury yield investments (^TYX, ^TNX, ^FVX) to market participants. "The inflation concerns are a little overblown in the short term, and the selling was just overdone there," O'Rourke says, describing the current market as a "pretty attractive safe investment." Analyzing the broader market landscape, O'Rourke highlights the post-election "euphoria" following President-elect Donald Trump's 2024 victory. He cautions that election outcomes don't automatically translate into policy, suggesting the market rally (^DJI, ^IXIC, ^GSPC) will be "hard to sustain" as campaign promises face practical implementation. "I think going to year-end here, investors should be a little more cautious," O'Rourke advises. "We had a tremendous run and were pricing in expectations that will take time and work to achieve." He emphasizes that the current market "presents a great opportunity to be a little more defensive." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith
