Tommy Mayes

Right now it feels like we’re living in a financial version of “La La Land.” Even the historically-seasonal instability of September and October failed to materialize. Like the part in a movie where everything seems fine, even as the ominous soundtrack is shifting, are we in a dreamlike uptrend while potential cracks are forming beneath our feet?

U.S. equity markets are floating at all-time highs. Yet several cross-currents remain:

• New hiring is slowing
• Consumer and wholesale prices are rising
• The full weight of tariffs has not been realized
• The Federal Reserve is signaling more rate cuts, but inflation metrics are sticky
• Small businesses are feeling it
• Big companies are trimming staff

We have seen this movie before.