In the second half of the year, stocks are showing modest gains, with the NASDAQ being the top performer. Brian Vendig, the Chief Investment Officer of MJP Wealth Advisors, predicts that earnings will continue to expand on a sequential basis, which could lead to a catch-up in the markets. He notes that the first half of the year was dominated by the tech sector, with nine out of the 11 sectors in the S&P 500 trailing behind. Vendig anticipates that as earnings expand from areas outside of mega-cap tech, there will be an opportunity for a catch-up in the markets.
Regarding the election’s impact on markets, Vendig states that it’s difficult to handicap politics and is adopting a “let’s get to the election-first” perspective. He notes that the consumer part of the story has been driving inflation, but with a slowing consumer, slower spending, and less wage inflation, he expects some disinflation in the system. Vendig remains confident that over the second half of the year, inflation will come down, rates will come down, and the Fed will cut rates.
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