## Is Trouble Brewing Despite Record Highs?

The market is soaring, hitting record highs, but some experts are sounding the alarm. Here’s a breakdown of what’s worrying some market watchers:

• **Trade Deadline Concerns:** Megan Horneman, CIO of Verdence Capital Advisors, believes the market is overly optimistic about the August 1st U.S. trade deadline.
• **Multiple Risk Factors:** She points to potential issues including:
  • Uncertainty surrounding tariffs.
  • Uncertainty regarding Federal Reserve policy.
  • Overbought conditions in growth stocks, including Big Tech.
• **Valuation Correction Potential:** Horneman anticipates a potential valuation correction if rate cuts are less likely and tariff uncertainties persist.
• **Long-Term Bullishness:** Despite short-term concerns, Horneman remains a long-term bull, viewing pullbacks as buying opportunities.
• **International Stocks as a Play:** She favors international stocks, despite their current valuation, as a potential area for growth, seeing them as undervalued compared to U.S. stocks.
• **Advice for Investors:** Her key advice is to ensure proper asset allocation.
• **Other Concerns:** “Fast Money” trader Guy Adami also sees potential issues, citing frothy valuations and the influence of retail investors.
• **Market Performance:** The S&P 500 and Nasdaq have seen significant gains recently, closing at record highs.

For more details, you can read the original article on CNBC.