The 1st half of 2018 has been quite a roller coaster. We has seen the return of volatility, where the S&P had 23 days with a 1% move in just the 1st quarter vs. eight days for all of 2017. We have seen a resurgence in the US dollar, along with oil hitting 3 year highs, while Chinese stocks tumble into bear market.

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Commodities such as oil has been up the most due to supply constraint and geopolitical tension, while bonds have been down the most due to higher interest rates.

Investor pulled out over $12 billion from global stock funds in June, the highest since October 2008. World Markets are either flat or down through the first 6 months in 2018.

Source

In the US Markets, it's no surprise to see the NASDAQ leading the way.

The FANG stocks have been on a tear this year with Netflix over 100% in just 6 months.

It shouldn't be a surprise that the Russell 2000 is right behind the NASDAQ. These small-cap stocks do not have much exposure to the risk in the global markets because their performance is tied to the domestic economy. When you consider Trump’s tax shaving these stocks corporate tax rate from 32% to 21%, that’s a significant amount of money going to the bottom line.

Within the US Markets, the consumer discretionary and technology sector are leading the way, while the rise in interest rates and trade wars are hurting the industrial and materials sector.

I think the second half of 2018 will hold more of what we saw in the first half, more volatility. Will the Markets finally turn for the worse or will the Bull Market continue...only time will tell?

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.