After the brief enthusiasm due to the uneventful meeting between Trump and Xi, investors are now a bit more cautions, as they should be I might add, regarding taking the market deeper into record territory, at least in the S&P500. Earnings will be a big part of the next driver for stocks and so far the scenario is grimmer than ever before in the last twelve years.
On the sector front, technology and home-builders are on the lead in the Bulls arena, with almost 30% in gains each, this year alone, while safe heaven assets like utilities score a respectful 12.4% increase in value, so everyone is actually happy on the “Longs” department, which tends to be a warning sign. In any case, let’s keep in mind that Friday it will be non-farm payrolls day and a confirmation of a hard landing in the job market could trigger a selling spree into the earnings season, as well as a devaluation of the U.S dollar.
Photo by Louis Velazquez.
