“The equity market will remain choppy until trade uncertainties recede and global growth momentum bottoms,” said strategists at MRB Partners in a note. “While the threat of protectionism has risen in recent weeks, we do not expect trade restrictions to derail the global expansion.”
Bullish Small Cap Market
Despite the larger markets feeling the ebbs and flows amid trade concerns, the small cap market continues its bullish strength–up about 7.6 percent year-to-date. Not since 2013 has the Russell 2000 performed this well.
“We took a look at future returns after these long weekly win streaks on the Russell 2000, sure enough small caps continued to do well,” Ryan Detrick, senior market strategist at LPL Financial, told CNBC’s “Trading Nation” on Tuesday. “Small-cap leadership is a good thing. It could be carving the way potentially for this bull market to continue as the S&P’s second half of the year also does well.”
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