Three overlooked factors that could spark the market's next move
Here's what investors need to know before the next market shift.
The stock market has been on a rollercoaster, leaving investors feeling uncertain. Chris Versace, portfolio manager at TheStreet Pro highlights the major factors that could shape what happens next.
Related: The stock TheStreet Pro is most bullish on right now
Full Video Transcript Below:
CHRIS VERSACE: The market's been extremely volatile of late. The question that we're getting is are we near a bottom in the market. And while we think that we have put in a bottom one that we might retest before too long and something we need to do in order for the market to eventually move higher, we have questions about how fast the market might rebound. A lot of this stems from what we could hear about June quarter guidance, when companies report their march quarter results. I say this because current consensus S&P 500 earnings expectations for the June quarter are up about 9% compared to the march quarter.
That's far faster than the 7% growth we saw last year during the same time frame. But this year, what do we have? Increasing concerns about consumer spending. Consumers tightening their belt. Trading down. We have business uncertainty near all time highs and the potential escalation in tariffs. That tells us that there might be some disappointment when companies provide their June quarter guidance. As a result, we are going to proceed cautiously as the market is likely to remain volatile. So as you're looking to counter volatility which can be an uncertain time for some what we're doing is kind of revisiting the positions we have in the portfolio and potential candidates that we want to own. We're double checking the investment thesis, revisiting the economic data, and trying to determine where we see a favorable risk to reward entry, either for existing positions or new ones. The idea is that when the time is right, we want to be ready to strike.
There's a lot of tariff headlines out there. You know, whether it's potential Trump tariffs, escalating tariffs from other countries or the much touted April 2nd Trump reciprocal tariffs. So we are taking our time to parse these as they come, trying to understand which sectors of the economy might be impacted. But at the same time, where are we continuing to see spending unfold so we can position ourselves accordingly.
