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.
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.
Although uncertainty remains, perpetual market swings may be less frequent.
History suggests a rebound could be in order.
Do top-heavy markets eventually spread out? Diversification in investment strategies is essential as the market is inherently unpredictable.
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.
Everybody loves a good comeback story: Seabiscuit. The Mighty Ducks. 493 stocks in the S&P 500 index.