With conviction scarce and the macro backdrop muddled, May’s rally felt more like positioning than belief. Beneath the surface, fund flows split in opposite directions: retail chased momentum, while long-only institutions quietly lightened exposure. With corporate buybacks peaking and Q2 earnings silence approaching, supportive stock buying may dry up just as volatility reawakens.
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Meanwhile, the dollar’s five-month slide and gold’s continued strength hint at deeper anxiety—one not yet priced into equities.  Add in fresh tech sanctions and tariff escalations, and the path forward looks increasingly headline-driven.Without a clear catalyst or earnings tailwind, equity valuations looks stretched—and fragile.

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