From the desks of Stanley Katz & Lauren Madera
HAPPY MOTHER’S DAY TO ALL THE MOTHERS, CAREGIVERS, AND MOTHER FIGURES! YOUR LOVE AND DEDICATION MAKE A WORLD OF DIFFERENCE.
The three major U.S. stock market indices took a small step back this week (i.e., DJIA: -0.16%, S&P 500: -0.47%, Nasdaq: -0.27%), a modest pause after the previous week’s robust rally. This restraint comes amid what Argus Research describes as “persistent US tariff uncertainty” that continues to shape market sentiment. While the “Liberation Day” panic of early April has subsided, investors remain wary of potential economic turbulence ahead. As the Argus report notes, GDP contracted by 0.3% in the first quarter, largely due to a massive 41.3% surge in imports as companies stockpiled inventory ahead of anticipated tariff increases. This one-time distortion suggests that subsequent quarters may see growth return, though at modest levels.
The current environment has many analysts examining how various geographies and sectors may be affected by ongoing policy developments. Domestically-focused businesses potentially face different challenges than those dependent on complex global supply chains. Franklin Templeton postulates that the US market may not sustain its extraordinary outperformance versus the rest of the world. It appears that they are not alone in their thinking — global investors are increasingly considering geographical diversification in response to trade policy uncertainty. From our seat, geographic diversification has benefited investors year-to-date for the first time in many years.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Argus:
Franklin Templeton:
J.P. Morgan Asset Management:
Nuveen:
Schwab:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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