Fading Momentum

U.S. stocks are sitting at the same levels they were seven months ago, but the path hasn’t been straight. Equity investors have been on a bumpy ride since September 2018, and investors’ resolve has been tested amid back-and-forth in trade negotiations, a historic government shutdown, Brexit, the Federal Reserve’s (Fed) U-turn in policy, and signs of a global slowdown.

Fortunately, the S&P 500 Index weathered a steep decline late last year and has found its way back around record highs. Stocks’ historically strong start to the year has been promising, but there are still signals that more weakness could be in store before the S&P 500’s next leg higher.

Download the Full Article