One minute the market is roaring to new highs, the next it’s sending shivers down your spine with whispers of inflation and policy shifts. As we push deeper into the second half of 2025, we’re definitely in one of those “curious mix” phases.

The S&P 500’s sprint to a new record, recovering handsomely from its April dip, has certainly put a smile on many faces. But beneath the surface, a cauldron of uncertainties continues to bubble.

The inflation narrative, in particular, is one to watch closely. There’s a growing consensus that we’re on the cusp of a “tariff-induced” reacceleration of price increases. This isn’t just an abstract economic concept; it hits consumers directly, potentially eating into their purchasing power and, by extension, slowing down the broader economy.

Recent Federal Reserve data supports this concern, with inflation stubbornly clinging above its 2% target, even as hints of slowing economic growth appear. As one astute observer noted, the combination of foggy data and policy uncertainty creates a rather murky outlook for anyone trying to map out the financial landscape.

This murky outlook puts the Federal Reserve in a precarious position. While there’s been some chatter about an interest rate cut as early as July, the smart money seems to be on September as the more likely inflection point. The reasoning is sound: by then, we’re expected to see further demand erosion and a softening labor market.

In other words, they “sold in May” and “went away” until summer is over. Slower income growth could, in this scenario, outweigh the immediate inflationary pressures from tariffs, giving the Fed reason to prioritize a growth slowdown over a potentially short-lived inflation blip. It’s a classic balancing act, and they’ve got their work cut out for them.

Despite these underlying economic anxieties, the markets have, pretty counter-intuitively, charged higher. Technology and financial stocks have been leading the charge, fueled by a resurgence in consumer sentiment and a glimmer of clarity on trade policy — though that clarity can certainly be fleeting, as evidenced by recent discussions with America’s neighbors to the north.

Market commentators highlight how investors are starting to zero in on more positive growth drivers, such as potential legislative wins and the highly anticipated rate cuts. This suggests continued upward momentum, though it’s wise to expect a few gut checks along the way.

Adding another layer of intrigue, several prominent companies have pulled their earnings guidance, citing global trade concerns. While this initially introduces more uncertainty, it also effectively lowers the bar for performance. This could lead to a series of pleasant surprises in the upcoming earnings seasons, a financial under-promise, over-deliver scenario.

Let’s not forget the buzz around increased IPO activity and the ever-present AI story. The continued evolution of artificial intelligence is definitely seen as a significant long-term driver for the markets, with many anticipating a renewed focus and investment in the sector.

In essence, while the market has shown a remarkable ability to shrug off some serious headwinds, vigilance remains paramount. The delicate dance between inflation, the Fed’s monetary policy, and the unpredictable nature of global trade will undoubtedly shape the remainder of 2025. But for those willing to look beyond the immediate turbulence, the underlying strength in key sectors and the potential for unexpected positive news could offer some compelling opportunities.

Sell in May and give up 4-5 months of potential gains? Not me. Since the end of April, the GameChangers portfolio is up 31% . . . spectacular even when you balance it against a 13% gain for the S&P 500 in the same period.

People evidently aren’t selling their stocks. They’re buying. And they’re especially hungry for ours.

And even when the buy-and-hold side of the market starts to grind on the combination of season sluggishness and age-old anxieties, there’s always the options as a way to keep money moving. Across all of my options strategies, we scored FOUR wins last week . . . all calls, which means 100% bullish turned into an average of nearly 80 points of profit per trade.

I’ll take it. And the “slowest” of these strategies, Triple Digit Trader, did best. Two wins, one “only” 99% and one above 140% . . . truly living up to the triple-digit name and in barely a week.