The Second Half

The first half of the year is behind us. What can we expect now?

Here are some predictions:

1. Increased volatility will continue.
2. Earnings growth should stay strong.
3. The AI trade will wane in importance.
4. Stock market leadership should broaden out.
5. The value style will continue to outperform growth.
6. We are vulnerable to a correction, and one could be coming soon.
7. Interest rates will trend higher before they finally begin to retreat.
8. Inflation will decrease only gradually.
9. Our economy will continue to be divided into the haves and have-nots.
10. The war with Iran will not have a conclusive ending but will drag on messily.
11. The Russia/Ukraine war will continue.
12. The fall election cycle will soon weigh on investor sentiment.

The adage goes that one should not make predictions, especially about the future. However, everyone needs some kind of starting point when assessing how to prepare. The Taoists would say that if you think you know, you really don’t. With those caveats in mind, it will be interesting to see how well these points play out. In the meantime, we at Riverplace Capital have introduced better balance in portfolios to account for the greater unknown. As always, we will adjust as necessary. You should, too. Stay steady my friends.

– The Lonely Bull