Sell In May and Go Away | Episode 132 | 05-13-24
With the warm breeze of summer comes a wave of economic changes that could impact investors worldwide. Megan discusses the intricacies of the financial market during these potentially turbulent times and dissects the myth of “Sell in May and Go Away,” scrutinizing the S&P 500’s historical summer performance, especially in the face of current market volatility.
She discusses the nuances of inflation concerns and the implications of the burgeoning budget deficit. With the presidential election, political shifts could significantly sway market dynamics. This isn’t just about trends; it’s an understanding of the forces that could shape your investment strategies in the coming months.
Megan explores the potential for valuation corrections in an overstretched market and the possibility that tariff discussions that could sway investor confidence. With crucial economic data on the horizon, including consumer retail sales and pivotal inflation reports, she provides actionable insights to help you stay one step ahead.
This episode also touches on the Federal Reserve’s response to inflation, which has become a growing concern as consumer expectations increase. Megan discusses the alarming budget deficit, projected to approach one and a half to two trillion dollars, which could reach nearly seven percent of GDP. This is particularly concerning during a period where the economy is still expanding. How the government plans to finance this deficit is a question that looms large, with the Treasury’s quarterly refunding announcement being a critical event to watch.
The upcoming Democratic and Republican conventions also serve as a backdrop to the episode, marking the official kickoff of the election season.
