A Summer Struggle To Be Followed By A Resumption Of The Bull Market

The S&P 500 has rallied 16% in six weeks, supported by 27.7% Q1 earnings growth and higher analyst estimates. Despite the strong tape, the article argues for a more defensive short-term stance because rising interest rates, weakening market breadth, and persistent inflation are headwinds for risk assets.

Analysis

The S&P 500 has rallied 16% in six weeks, supported by 27.7% Q1 earnings growth and higher analyst estimates. Despite the strong tape, the article argues for a more defensive short-term stance because rising interest rates, weakening market breadth, and persistent inflation are headwinds for risk assets.