May followed up April with another 4.9% increase in the S&P500. The last couple of months have been on an incredible run. Obviously, it’s nice to see this, but it’s also hard for us to NOT get used to seeing these gains.
The Artificial Intelligence (AI) momentum is battling oil prices right now. The conflict in the Strait of Hormuz seems to be holding back gains in the markets. With higher oil prices, consumers generally have less money to budget for other things, such as, new clothes, or a new car, or perhaps that bathroom remodel. After all, budgets have constraints so if more goes to fuel prices, less can go to other things. Let’s hope that a US-Iran peace deal is solidified soon. There’s a good chance the markets will see additional upside due to the lower oil prices.
With June starting at all-time record highs, we’ll likely start to see some pullbacks here every so often. We’ll also see a Federal Reserve meeting near mid-month. Whether they raise rates, lower rates, or keep them steady will likely have some sort of impact on both the stock and bond markets.
I hope you have a great start to your Summer. With the kids out of school, it’s time to blow up the water slides and break the bubbles out.
Thank you for your continued support and trust in our firm. We are extremely appreciative of out clients.
Larry Mroczkowski
President
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.