""Stock markets respond to risks shifting around," said Claudia Sahm, chief economist at New Century Advisors and inventor of the famous Sahm rule for recessions. "Households respond to reality.""
"Volatility is the product. Since the post-2008 financial reforms, Wall Street's trading desks have been rebuilt around client facilitation. They don't make money when markets go up; they make money when clients trade.""
The S&P 500 achieved a record high of over 7,000, with major banks like Goldman Sachs and Morgan Stanley reporting significant revenue increases. Despite Wall Street's success, Main Street faces challenges amid the ongoing Iran conflict, which has created economic uncertainty. Analysts speculate on market manipulation by President Trump, while economist Claudia Sahm suggests that stock markets react to shifting risks, whereas households are affected by real-world conditions. The current volatility is driven by client trading rather than market direction.
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