Newton IM Warns of Market Risks Amid Growth-Driven Rally
Equity markets continue their upward trajectory fueled by renewed U.S. growth optimism, but Paul Flood of Newton Investment Management highlights mounting risks. Stretched valuations, earnings-season volatility, and an August liquidity crunch threaten to disrupt the rally.
Trading desks face heightened execution risks as Q2 earnings produce erratic intraday reactions. Flood advises trimming exposures ahead of seasonal thin liquidity, warning that delayed portfolio adjustments may amplify volatility and transaction costs.