If Trump's Bull Market Does Cool Off, These Stocks Could Reverse Fast - and These Others Might Keep Powering Higher

"Any way you look at it, the market's latest upward spike seems to speak to the resilience in the face of unexpected geopolitical surprises. Of course, there was that initial hit (a correction), but if you stayed the course as an investor, you rode one of the steepest recovery bounces in recent memory. In many ways, it felt like the bounce back from the COVID crash back in 2020."

"Either way, stocks are spiking, and the big question is whether the post-plunge spike is going to overshoot as it did in 2021 before the great bear market of 2022. While higher energy prices from the blockage in the Strait of Hormuz could increase the odds of a Fed rate hike, it's really hard to tell what the future holds as a new Fed chair, Kevin Walsh, looks to take his seat."

"The pundits would argue that Walsh leans just a bit more towards the hawkish side, but that's no reason to brace for rapid-fire rate hikes. In any case, after Friday's good jobs report and inflationary pressures, the case for hikes might not be all too far off. Of course, the odds suggest a pause is the likeliest course of action for the time being."

"While it's impossible to tell what comes next with markets (they've been incredibly unpredictable almost every step of the way), I do think that focusing on relative value could make a lot of sense. The markets are soaring, but not everything is participating in the upside gains. Microsoft has lagg"

The stock market continues rising despite geopolitical concerns related to Iran and the Strait of Hormuz. Investors who stayed through an initial correction experienced a steep recovery bounce comparable to the rebound after the 2020 COVID crash. The market’s strength is attributed to resilience amid unexpected surprises, with AI positioned as a key driver. The main uncertainty is whether the post-plunge spike will overshoot like in 2021 before the 2022 bear market. Higher energy prices could raise the likelihood of Fed rate hikes, especially with a new Fed chair, Kevin Walsh. Recent jobs and inflation data may support hikes, but current odds favor a pause. Focusing on relative value is suggested because not all stocks participate equally in the gains.

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