Market Insights with Eric: Episode 50

Markets Love Certainty: 

• Equity markets have rallied since mid-April as fears over new tariffs have eased. With a temporary reprieve in trade policy uncertainty, investors rotated back into risk assets. The market’s appetite for stability is clear – but the biggest lingering risk may lie in the long bond. 

Buying Opportunity in the Long Bond:  

• Yields on the 30-Year Treasury have climbed above 5%, driven by Moody’s recent U.S. credit rating downgrade and the new tax and spending bill. The question now: Is this rise in long yields a signal of broader market stress – or a chance to buy long duration at attractive levels? 

Hard vs. Soft Data:  

• A persistent disconnect remains between economic data and consumer sentiment. On paper inflation, unemployment, and GDP growth remain solid, yet Americans still report feeling economic pressure. This highlights the gap between how the consumer feels about the economy and what’s actually going on. 

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Eric Parnell is solely an investment advisor representative of Great Valley Advisor Group, and not affiliated with LPL Financial. Any opinions or views expressed by Eric Parnell are his own and are not those of LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Economic forecasts set forth may not develop as predicted.

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