The Market Had a Fantastic Second Quarter. But Here's the Warning No One Is Talking About.

While the S&P 500 gained 15% in Q2 and reached record highs, the market has stalled over the past month. Mixed economic data, persistent inflation above the Fed's 2% target, steady interest rates, and geopolitical tensions with Iran are weighing on sentiment. The market's CAPE ratio of 41 is near the 2000 peak that preceded a major crash. Investors should balance growth stocks with defensive positions to weather potential volatility.