The stock market has experienced a steady upward trajectory over the last two years. This growth has been fueled by strong corporate earnings, robust economic growth in the US, and significant investments in major technology firms.

As a result of this surge in capital, market sentiment has improved. Additionally, falling interest rates have further boosted investment returns. However, potential volatility is on the horizon due to political uncertainties linked to the return of President Donald Trump.

• Trump is anticipated to introduce controversial policies, including tariffs and deportations.
• While markets may continue to rise in tandem with the economy, investors should prepare for fluctuations stemming from unpredictable political events.

Current challenges facing the market include:

• Increasing yields
• Rising energy costs
• Diminished expectations for interest rate cuts

All of these factors are contributing to a turbulent market environment.

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