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The equity market was doing o.k. last week until the escalation of tensions in the Middle East hit the tape. Friday's loss was mild in comparison to what I expected. This reinforces my view that there is too much
The 1-Minute Market Report June 15, 2025
Summary
- Market complacency remains high despite Middle East tensions, suggesting potential for further drawdowns as investors underestimate risks.
- May's market rally was strong, but June faces challenges amid earnings uncertainty, tariff concerns, and shifting money flows.
- Last week saw a rotation: investors favored volatility, commodities, energy, defensive, value, and miners, while selling tech, growth, and cyclicals.
- Geopolitical events may cause short-term market weakness, but historically have limited long-term impact on equity direction.
Trader, analyst & portfolio manager, from 1975 - 2001. Former head of equity trading at Northern Trust Co. in Chicago. Now a private investor, founder of a nonprofit investor advocacy firm, and private investing coach. It gives me great satisfaction to teach retail investors the same skills and strategies that I used with my high net worth clients as a private wealth manager. It may be a cliche, but giving something back to the community is more rewarding to me than helping very rich people get even richer.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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