Equity Euphoria Fades: August Correction Possibly on the Horizon

As of early July 2024, the equity markets have experienced a robust rally, culminating in 34 new all-time highs. However, this bullish sentiment is now transitioning to a more cautious, bearish outlook. The shift in sentiment is driven by a confluence of factors, including high market positioning, upcoming earnings season expectations, and the typical pre-election market behavior. Let’s dive in.