Reasons for Caution:
Tech stocks continue to get hit by the China trade war. Bank stocks slip as worries about refinancing corporate bonds intensify. The energy sector continues to slump as crude oil declines. Retail stocks continue to clump as costs increase because of the increasing tariffs. Adding to the tariff squeeze is the pending tariffs on Mexico until they secure the U.S. southern border.
“Quantitative tightening” continues as $41 billion of unwinding in May seems to be an undiscussed issue on Wall Street. When the Federal Reserve unwinds its balance sheet, money is drained