There’s been significant movement (up & down) in the stock market over the past year; however, we’re essentially where we were 12 months ago.
Investor sentiment has dramatically risen with declining inflation, but the broader market is essentially stagnant. The Equal Weight S&P 500 is up a measly 1.8% from last summer’s high. Despite the recent AI frenzy, some of the high flying tech stocks aren’t doing much better. Apple has dropped 7.5% from its recent AI peak…and it’s only up 3.5% from last August.
This year has been a stock picker’s market, but for now, I remain cautious because of declining corporate earnings and sticky inflation. The vast majority of my portfolio is safely parked in dull boring money market funds that are yielding ~5.2%.
PODCAST UPDATE: Wealthsteading is now available on Spotify:
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