This week should give investors an idea of where the market is going and what could cause their portfolio to increase. We believe that the Fed is on the back burner which could allow the market to continue to rally.
It will be a big week with corporate earnings and the Republican convention kicking off. The question is, “Can this market momentum keep going?” We’ve had a lot of great economic numbers come out in the past few weeks. Donald Trump’s policies could either make the markets more or less skittish.
As we continue to look at the second half of the year, we are already seeing some market surprises. On Friday we saw a surprise in the jobs report. Expectations are so low for corporate earnings that we are looking to take advantage of possible stock market surprises.
Surprisingly there are Brexit positive results in the US from what was at first viewed as all negative. The Brexit has influenced bonds, gold, interest rates and more. We will discuss these results and what to watch for in the next 6 months in the markets.
The Brexit points to an overall sickness of global frustration. The Brexit shows people are frustrated with the current state of the world. This has caused the unconventional to be popular. This is why we are seeing the popularity of US presidential candidates like Donald Trump and Bernie Sanders. The Brexit is just one symptom of a bigger problem.
The Brexit (the British exit from the European Union) impact has been felt more in our markets than the impact from the Fed. Even though the possibility of the Fed raising interest rates went down from 50% to 20%, the Brexit impact caused the market to trade down last week. More in the video.