Markets continue to grind higher, but not without their fair share of volatility. The S&P 500 recently hit new all-time highs, driven by AI euphoria and strong earnings from tech giants, but momentum has slowed as valuations get stretched and economic uncertainty lingers. The Fed has kept rates steady, signalling potential cuts later in the year, but inflation remains sticky enough to keep policymakers cautious. With markets already pricing in multiple rate cuts, any delay or shift in stance could spark turbulence.
Crypto remains in a strong uptrend, with Bitcoin pushing toward reclaiming six-figure territory as institutional demand through ETFs continues to accelerate. Ethereum has lagged but remains well-positioned to outperform through year-end amidst the long-awaited crypto bull run.
On the global front, China is facing continued economic struggles, while Japanβs stock market recently hit levels not seen in decades, fueled by corporate reform and a weak yen. The strength of global markets suggests risk appetite remains intact, but geopolitical tensions and trade policy shifts could disrupt the optimism.
The Nasdaq continues to dominate as AI-driven names lead the charge, but tech stocks are showing signs of frothiness. Valuations are rich, and while the fundamentals remain strong, the sector is vulnerable to any macro shocks.
Overall, risk assets still have tailwinds, but markets are pricing in a lot of good news. The key question is whether the economy and corporate earnings can justify these valuations, or if weβre due for a pullback.
My top investment ideas are Ethereum, Bitcoin, and Bored Ape Yacht Club.
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To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.