Three overlooked factors that could spark the market's next move

Here's what investors need to know before the next market shift.

Transcript

00:00The market has been extremely volatile of late.

00:02The question that we're getting is, are we near a bottom in the market?

00:06And while we think that we have put in a bottom, one that we might retest before too long and

00:12something we need to do in order for the market to eventually move higher, we have questions

00:17about how fast the market might rebound.

00:20A lot of this stems from what we could hear about June quarter guidance when companies

00:26report their March quarter results.

00:28I say this because current consensus S&P 500 earnings expectations for the June quarter

00:34are up about 9% compared to the March quarter.

00:37That's far faster than the 7% growth we saw last year during the same time frame.

00:44But this year, what do we have?

00:47Increasing concerns about consumer spending, consumers tightening their belt, trading down.

00:51We have business uncertainty near all-time highs and the potential escalation in tariffs.

00:58That tells us that there might be some disappointment when companies provide their June quarter

01:03guidance.

01:04As a result, we are going to proceed cautiously as the market is likely to remain volatile.

01:10So as you're looking to counter volatility, which can be an uncertain time for some, what

01:16we're doing is kind of revisiting the positions we have in the portfolio and potential candidates

01:22that we want to own.

01:23We're double-checking the investment thesis, revisiting the economic data, and trying to

01:28determine where we see a favorable risk-to-reward entry, either for existing positions or new

01:35ones.

01:36The idea is that when the time is right, we want to be ready to strike.

01:40There's a lot of tariff headlines out there, whether it's potential Trump tariffs, escalating

01:46tariffs from other countries, or the much-touted April 2nd Trump reciprocal tariffs.

01:53So we are taking our time to parse these as they come, trying to understand which sectors

01:59of the economy might be impacted.

02:01But at the same time, where are we continuing to see spending unfold so we can position

02:06ourselves accordingly?