Markets cool after a sizzling start of the year.

April turned out to be a difficult month after a red hot first quarter. The federal reserve was forced to cool expectations of interest rate cuts this year after a number of unexpectedly stubborn inflation reports. Additionally, turmoil continues in parts of the world which rattle investor confidence.

We continue to struggle on the outlook for the economy going from a hard landing to a soft landing to no landing back to a soft landing. Should we give up on the feds goal of 2% inflation and accept 3% inflation as perhaps a more realistic target? It should come as no surprise there is confusion on the average investors mind as to the best path to take.

On a more positive note, earnings have thus far have been better than expectations and the economy is producing record levels of employment. May through June are typically among the weakest months of the year. Once we are past the seasonal weakness, the market should regain its bullish momentum throughout the remainder of the year.