June Swoon: What Are Markets Saying, What Are We Seeing

The June swoon looks like a rotation and rebalancing-driven air pocket, not a regime break. Economic growth, earnings revisions, and AI-driven capex demand remain firm, but rising yields, inflation concerns, Fed uncertainty, and a looming IPO wave are likely to constrain further multiple expansion. But progress toward a resolution of mid-east tensions, rallying bonds, and falling oil prices, have motivated us to add a tactical long consumer discretionary trade.