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As company earnings continue to beat Wall Street expectations, US Equities (^GSPC, ^DJI, ^IXIC) are rising from April lows. The market has also begun to price in the Federal Reserve's policy of keeping higher interest rates for longer, but is there more for investors to consider for the next few months?
Horizon Investments Chief Investment Officer Scott Ladner and Freedom Capital Markets Chief Global Strategist Jay Woods join Market Domination to provide insight into navigating the market during the current economic environment.
Ladner argues that the market needs a new catalyst. In the absence of any large upcoming catalyst, investors may be staring down a more challenging few months: "We could actually have some, some positive catalysts from the geopolitical standpoint. But I don't see anything huge on the horizon, frankly. I mean, I think this is gonna be a bit of a grinder, probably a little bit grinder for the next few months, but grinding up rather than down. "
Woods questions how far earnings can carry the market: "Individual earnings, they're not enough to take that next leg higher. Amazon (AMZN) made a new high today. It's on the verge of a major breakout. If you look at it on a weekly chart, it hasn't taken us there. Alphabet (GOOG,GOOGL), did, Microsoft (MSFT) didn't on solid earnings. So we're not seeing that euphoria. We're not seeing that tailwind we want to see. "
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This post was written by Nicholas Jacobino