Read the latest Weekly Headings by CIO Larry Adam.

• Equity markets entering the ‘Dog Days of Summer’
• Below average trading volumes can lead to exacerbated price swings
• Remain patient and position for buying opportunities

• The S&P 500 is off to its best start to a year (19.9%) since 1996.
• A budget deal and earnings have been recent catalysts.
• The fed, earnings, and data are key items to watch next week.

With the future of technology remaining bright and necessary for the U.S. to remain the dominant global superpower, we continue to view technology as one of our favorite equity sectors.

• Macro trade and monetary policy optimism have lifted the U.S. equity market to record levels
• Second quarter earnings growth likely to be lifted from negative to positive territory
• With elevated equity valuations, positive forward guidance needed to maintain momentum

Like Batman, investors cannot resort to superhuman powers when investing. Instead, knowledge, analytical skills and ingenuity are paramount for success. Asset allocation, diversification and risk management are essential dynamics to consider as volatility moves higher.

The sharp increase in geopolitical risk, potential action by OPEC to boost crude oil prices (through further supply cuts), and our view that concerns surrounding global growth are overdone support our year-end WTI forecast of $70/bbl.

The “inconvenient truth” of equity market pullbacks is that investors tend to want them in order to invest at more favorable prices, but when they actually occur, investors get nervous, question their conviction and postpone their purchases.

Memorial Day is also the “unofficial” start to summer as the temperature heats up, school ends, and vacation season begins. With more people on vacation there is a tendency for investors to lose focus on the financial markets. However, this particular summer presents numerous events, deadlines, and potential headlines that we believe investors cannot ignore as they could lead to increased volatility, both to the upside and downside.

As the Friday early morning deadline (12:01 AM EST) expired, tariffs on an additional $200 billion of Chinese imports have technically gone into effect. However, as we go to press, negotiations are ongoing with the hope that a compromise can be brokered.

Equities remain near all-time highs, as the S&P 500 closed at a record high two times this week and is now up 17.1% year-to-date, the best start to a year on a price return basis since 1987.

On the back of 1Q19 solid earnings results and healthy economic data releases, the S&P 500 continued its remarkable move higher this week and closed at a record high (2,933) for the first time since September 2018.

Emerging markets, particularly in Asia, remain one of our favored regions for several reasons including...