After a negative performance during the first quarter, the market has surged, with April and May producing one of the best two-month performances on record. But can the bull market keep going? On this episode, host Mike Townsend welcomes Kasey McCurdy, chief portfolio strategist with Schwab Wealth Advisory™, for an engaging discussion about why the market’s powerful recent rally may be more durable than it appears, but also why caution is still warranted. They discuss how momentum and investor “FOMO” have played a role in the recent run, but it is strong corporate earnings that have been the primary driver. They dig into the evolution of AI investing as the focus shifts from infrastructure builders to companies that can effectively monetize and apply AI, with future returns hinging on proving real return on investment rather than just hype. Kasey and Mike also discuss the disconnect between strong markets and weak consumer sentiment, how investors should be thinking about the upcoming mega-IPOs and why it’s an important time for investors to consider rebalancing their portfolios. Mike also shares his perspective on some of the latest headlines coming out of Washington, including how an increasing number of “free agent” Republicans could derail the president’s policy agenda and the launch of the new Trump Accounts for children.
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The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Past performance is no guarantee of future results.
Investing involves risk, including loss of principal.
All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
Diversification, asset allocation and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.
Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.
Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.
International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.
Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.
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