Tune In

Large-cap tech stocks have driven much of the market's gains, but emerging signals show other sectors and styles are starting to participate meaningfully.

As the second half of the year begins, how can investors maintain perspective around the strong market rally, interest rates, and the upcoming election?

The S&P 500 index closed above 5,000 earlier this year and has set new all-time highs less than three years after it first crossed the 4,000 mark. While some are understandably nervous any time the market is near record levels, investors also tend to grow more bullish as the momentum continues.

Although a lot can happen between now and November, some investors are naturally concerned about politics' impact on the stock market and economy. After all, the political climate has never felt more polarized due to elections and disagreements in Washington around the budget, immigration, foreign policy, and more. How can investors stay balanced during this year's presidential election?

Taxes are no one’s favorite topic, but their importance cannot be overstated as tax policy affects every aspect of our financial lives including how much of our paychecks, investment gains, and dividends we keep.

With markets nervous about stubborn inflation, a gradually slowing labor market, and the timing of the first Fed rate cut, investors are more focused on this corporate earnings season than usual. While the economy has avoided a “hard landing,” corporate earnings only began to rebound in the second half of 2023.

In times of market uncertainty, investors often seek the safety of cash. This has been true over the past several years as markets have swung due to the pandemic, geopolitical events, Fed rate hikes, inflation, gridlock in Washington, technology trends, and more.

So far this year, the S&P 500 has achieved 17 new all-time highs amid steady economic growth, relatively goldilocks inflation, the ongoing rally in the tech sector, and momentum and growth-style factor stocks. In times like these, long-term investors need to stay diversified, keep sight of the bigger picture, and avoid chasing the performance of assets that have been working in the recent past.

The stock market continues to reach new heights, driven by a stronger-than-expected economy and the largest fast-growing technology stocks, known as the Magnificent Seven

Consumer spending is the backbone of the U.S. economy, constituting over two-thirds of our nearly $28 trillion GDP. When consumers spend money, it helps spur economic growth and reflects economic trends such as consumer sentiment, the job market, household net worth, inflation, housing prices, the stock market, etc.