Horizon Investments

Late last week, investors were hit with news of the worst inflation spike in nearly two years. But a closer look “under the hood” reveals that price pressures aren’t nearly as bad as some headlines suggest.

The Cboe Crude Oil ETF Volatility Index (OVX), which measures implied volatility in oil ETF options, estimates the expected volatility of crude oil prices over the next 30 days. The higher the reading, the more oil prices are expected to bounce around.

Last week, Nvidia—whose processors are a key driver of the AI wave—became the world’s first publicly traded company to hit $4 trillion in market value.

For years, Americans have lamented that rising housing prices and elevated mortgage rates have made homeownership unaffordable for too many first-time homebuyers, while prompting many homeowners to stay put rather than sell.

After falling 0.7% in April, the S&P 500 gained 6.3% last month, marking the index’s best May return since 1990 and its best monthly return since November 2023 (see the chart).

Investors have breathed multiple sighs of relief in recent weeks as the Trump administration has dialed back its extreme tariff rates on China and other countries. In addition, first-quarter earnings were better, overall, than many expected given the quarter’s uncertainty.

On Monday, the U.S. and China announced they will temporarily suspend the high import tariffs they imposed on each other earlier this year.

Although uncertainty remains, perpetual market swings may be less frequent.

History suggests a rebound could be in order.

What does Nvidia’s historic rout mean for investors?

Do top-heavy markets eventually spread out? Diversification in investment strategies is essential as the market is inherently unpredictable.

A significant valuation gap has emerged between the top-performing megacap stocks and the rest of the market, creating potential opportunity.

Stocks have had a habit of gaining ground no matter who becomes President.

The Fed’s rate cut last month has not jumpstarted U.S. housing market. Buyers need lower rates to get back in the game.

Successful investing doesn’t have to be a thrill ride.