From Investing.com: 2025-06-02 05:35:00

In a successful test, the market remains overbought in the short term, suggesting a consolidation process may occur. The recent bounce from the 200-DMA indicates the April correction is likely complete. With markets still overbought, further consolidation is expected before reaching new highs. Q1 earnings season is expected to be the peak for earnings growth. Market narratives can be harmful, driving emotional decisions in investing. Bearish narratives often hold more power due to loss aversion and media amplification. Rising debts and deficits historically lead to lower interest rates. The market absorbs negative narratives long term, emphasizing the importance of staying invested despite changing narratives. To navigate pessimistic narratives, separate signal from noise, use disciplined risk management, lean into value, quality, and dividends, and remember the long-term game in investing.



Read more at Investing.com: The Narratives Change, but Markets Don’t