Market Musings 8/8/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
The S&P 500 finished July up +1% on #Goldilocks cheer. However, optimism sharply reversed in August on recession fears.
🐻 Goldilocks July
July kicked off with strong #LaborMarkets and slowing inflation. It seemed the economy was holding up for the coveted #Goldilocks soft landing.
We also saw a lot of rotation out of high-growth Tech. While muting overall gains, Value outperformed Growth by 6% in the month.
💀 August Panic
While fading towards the end of July, markets nosedived to start August.
The strong June jobs data was revised lower and July’s whiffed even that.
August opened with the S&P 500 down -6% in the first three days.
Markets have stabilized since and even rebounded on some new jobs data. While still possible, we don’t believe the #Goldilocks soft landing will return as the base case. A soft landing is extremely hard to navigate pulling levers that takes months to show impact based on data from a month ago.
We expect a lot of volatility over the next few months with likely #RateCuts in September and the looming election in November. We recommend taking advantage of any pullbacks to add to portfolios and buckle up for a bumpy ride.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original photo by fauxels.