From the desks of Stanley Katz & Lauren Madera
WELCOME TO “BETTER CONVERSATION WEEK!” WE WISH YOU A THANKSGIVING HOLIDAY OF MEMORABLE MOMENTS WITH THE PEOPLE YOU LOVE.
WE WILL BE CELEBRATING TOO, SO THE WEEKLY HIGHLIGHTS & COMMENTARY IS ON VACATION NEXT SUNDAY. SEE YOU IN DECEMBER!
The market took a breather this week (DJIA: -1.91%, S&P 500: -1.95%, Nasdaq: -2.74%). It’s the kind of modest correction that tends to naturally occur after strong gains. Worth noting is what’s happening beneath the surface: the market appears to be gradually rebalancing away from the concentrated bet on a handful of mega-cap tech names toward a more diverse set of opportunities. J.P. Morgan’s 2026 outlook suggests this shift could have staying power, with genuine growth headwinds (e.g., tariffs, tighter immigration) potentially building through the year. This means that, while AI and tech innovation remain important long-term themes, the one-stock-market rally of 2025 may eventually face challenges. The Fed, meanwhile, remains divided on whether to keep cutting rates or pause. This may translate to a more measured path forward than markets initially anticipated. No need to fret though. A measured pace can still support healthy market conditions, but investors should prepare for some volatility along the way.
Enter Fidelity’s RSI analysis, which quantifies what the weekly price action is whispering. Have stocks moved into overbought territory — the kind of technical extreme that could precede consolidation or pullbacks? The S&P 500’s relative strength index appears to be flashing caution, suggesting the momentum powering this year’s gains may be weakening. This may indicate consolidation rather than a crash, as markets could be correcting imbalances before the next potential advance. For investors who’ve been waiting on the sidelines, this kind of technical cooling potentially creates opportunities to invest cash. The week’s weakness also serves as a reminder that diversification, which felt less relevant in 2024, still has merit.
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.
J.P. Morgan Asset Management:
Fidelity:
Argus:
Schwab:
Capital Group:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Source for weekly stock market returns: Barron’s.
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven, LLC (OneSeven). OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
OneSeven does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.