At a high level, we believe this advice can help prepare investors for the second half:
▪ Earnings are key. Second half gains will likely require corporate profits to continue to exceed expectations.
▪ Valuations are a headwind. Most good news is priced in, we believe, and any second half gains could be modest.
▪ Expect more volatility. Market corrections and pullbacks are normal and should be anticipated, especially in a late-cycle economy with a U.S. presidential election approaching.
▪ Be patient. Consider waiting for dips before adding equity exposure. That said, the strong momentum and positive earnings trends to date are consistent with staying fully invested, and diversified, in equities relative to your specific targets.
Click the link to read more: Weekly_Market_Commentary 7-15