The worst may be over – here’s why one expert thinks markets are due for a bounce back.
Transcript :
JAY HATFIELD: With regard to, you know, volatility in the market. Obviously, April was a bit of a debacle there, but we think may and June, albeit not great months seasonally should be more calm because the news flow should be better. We think that inflation is going to be under control. We do think there’ll be some good tariff news even if there aren’t any agreements. It’s hard to get any worse tariff news. We kind of had the worst case scenario already. So we’re pretty constructive about the next couple of months. We are expecting a powerful summer rally. So if you do try to fade, you know, the market now you just have to be pretty active and try to get back into. Because almost always summer is a good season. And you’re also likely to get a tax bill, which should be positive. More clarity on the Fed and more clarity on tariffs. So we’re looking for a normal summer rally.
What really normally occurs is you get this weakness when there’s no earnings because bad news comes from everything else. And good news comes from companies. That’s why you own companies because they’re doing well and reinvesting and have good strategies. So you get through June. There’s also a window where corporations can’t buy back stock in late June. So they start getting back in the markets, buying back stock. That’s important. That can be up to dollar trillion of inflows of capital every year. And then you get another quarter of earnings season. You can see from this earnings season not all companies but most companies are doing well. And news specific news is better than fears. So even if there’s a hit from trade at least it can be quantified. Investors can do their valuation and be more calm. So we think another earnings season plus All this policy uncertainty getting resolved, which it should by then, is like a dual factor. Hopefully Fed rate cuts that could really fuel this rally after a pretty sharp pullback.
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