Part 4/11:
With approximately $6 trillion sitting on the sidelines in liquidity, a shift into equities and corporate bonds is anticipated once the Fed begins easing. Such a move could trigger a multi-year rally, as lower rates reduce the allure of money market funds and motivate investors to seek higher returns through equities and bonds, fueling market expansion.
Strategic Positioning for Investors in Q3 and Beyond
Given the current market trajectory, experts advise caution for Q3, emphasizing the importance of avoiding complacency after a prolonged uptrend. While markets are performing well, a healthy retracement or pullback is considered part of a sustainable market cycle. This correction could be driven by persistent inflation concerns and potential political upheavals.