## Is Trouble Brewing Beneath the Surface of the Bull Market?

The market is soaring, hitting record highs, but not everyone is popping champagne. Megan Horneman, CIO of Verdence Capital Advisors, is sounding a cautious alarm, suggesting that the current rally might be built on shaky ground. Here’s a breakdown of her concerns:

• Trade Deadline Anxiety: Horneman believes the market is overly optimistic about the upcoming August 1st trade deadline, potentially ignoring the risks.
• Tariff Uncertainty: The ongoing trade war and potential tariffs are a major source of concern, adding to market volatility.
• Fed Policy in Focus: Uncertainty surrounding the Federal Reserve’s future policy decisions, particularly regarding interest rate cuts, is a key factor.
• Overbought Conditions: Technical indicators suggest that growth stocks, including Big Tech, are overbought, signaling a potential correction.
• Valuation Concerns: Horneman anticipates a potential valuation correction if rate cuts are priced out and trade uncertainties persist.
• Long-Term Bullishness: Despite her short-term caution, Horneman remains a long-term bull and views pullbacks as buying opportunities, particularly in international stocks.
• Allocation is Key: Her advice to investors is to ensure their portfolios are appropriately allocated to weather potential market turbulence.
• Retail Investor Influence: “Fast Money” trader Guy Adami also expressed concern, citing the influence of retail investors and frothy valuations.

For the full story, check out the original article on CNBC: [Insert CNBC Article Link Here]