3 Things That Could Derail This Rally

The U.S. equity market’s recent upswing may feel unstoppable, but three key risks could bring the party to a screeching halt. First, monetary policy is no longer just a tailwind — if the Federal Reserve grows wary of inflation or labor‐market tightness, rate cuts may stall or even reverse, undermining market optimism. Second, recession worries aren’t off the table: a sharp deterioration in earnings, job growth or consumer demand could unravel the rally’s foundation. Third, liquidity and valuation pressures are building — with lofty multiples and thin participation, a trigger (geopolitical, regulatory, or financial) could prompt a rapid pullback. Investors riding the wave should stay alert: the upside remains, but the margin for error is narrowing. #markets #investing #riskmanagement #bullmarket #SlimScan #GrowthStocks #CANSLIM