• Despite the persistent worries of recession and inflation, June saw solid technical improvements across the major stock indices.  
• Catalysts for market strength include the artificial intelligence revolution, spurring the semiconductor industry and the overall Tech sector.
• In addition, while Tech continues to be a market leader, breadth was better in June as strength expanded with the recent market breakout benefiting nearly all sectors.
• Helping matters, earnings have been better than expected. S&P 500 companies beat expectations by an average of 6.9% in the 1st quarter, versus a historical average of 4.1%. 
• On the inflation front, the Consumer Price Index (CPI) has continued to drop but is stubbornly higher than the target of 2%. 
• The investing environment continues to be in a delicate spot between cheering versus fearing strong economic data. 
• Good economic news gives hope that the Federal Reserve can engineer a rare soft landing. Meanwhile, strong economic data raises the odds for continued interest rate hikes to slow the economy down.
• Despite the economic noise, our technical indicators are positive and have allowed us to recently increase our percent invested. We will make sure to keep you updated.

Regards,

CHURCHILL MANAGEMENT GROUP

Source: Churchill Management Group

info@churchillmanagement.com 

** This report is meant to inform the reader of our current market opinion, which we, as professional money managers, use in our decision-making. It should be noted that stock market and bond market data are subject to varying interpretations and any one interpretation will not necessarily guarantee investment success. The information obtained from the sources specified herein and used as basis for our current market opinion is believed reliable, but we do not guarantee the accuracy of such information.