## Is Trouble Brewing Despite the Market’s Highs?

The market is soaring, hitting record highs, but not everyone is celebrating. Megan Horneman, CIO of Verdence Capital Advisors, is sounding a cautious alarm, suggesting potential headwinds could be on the horizon. Here’s a breakdown of her concerns:

• **Trade Deadline Anxiety:** Horneman believes the market is overly optimistic about the August 1st U.S. trade deadline.
• **Tariff Uncertainty:** Concerns remain about potential tariffs and their impact on the market.
• **Fed Policy Uncertainty:** The future direction of Federal Reserve policy is another source of worry.
• **Overbought Conditions:** Technical indicators suggest that growth stocks, including Big Tech, are overbought, potentially setting the stage for a correction.
• **Valuation Correction Potential:** Horneman anticipates a valuation correction if rate cuts are no longer expected and trade uncertainties persist.
• **Long-Term Bullish Outlook:** Despite short-term concerns, Horneman remains a long-term bull, viewing pullbacks as buying opportunities.
• **International Stocks as a Play:** She favors international stocks, which she sees as relatively undervalued compared to U.S. stocks.
• **Advice to Investors:** Horneman advises investors to ensure their portfolios are appropriately allocated.
• **Retail Investor Concerns:** “Fast Money” trader Guy Adami also expressed concern, citing the number of retail investors driving recent market gains.

For the full story, you can read the original article on [CNBC](insert link here).