Fed Leadership, Policy Uncertainty to Fuel Market Volatility: Ned Davis Strategist

• Market volatility is expected to continue due to momentum trading, geopolitical headlines, and policy uncertainty, rather than economic fundamentals.
• Ed Clissold, Chief US Strategist at Ned Davis Research, highlights that short-term positioning drives market activity, not long-term signals.
• Uncertainty surrounding global trade, economic growth, and geopolitics contributes to market instability.
• Concerns over US monetary policy and the appointment of a new Federal Reserve chair are adding to market swings; historically, Dow sees a 15% correction in the first six months of a new Fed chair.
• US economic growth is expected to remain steady in Q1 due to consumer spending, but could slow later; corporate earnings growth may be lower than expected, leading to market pullback.

Why It Matters: New Fed leadership and policy uncertainty will keep markets volatile, driven by short-term trades and geopolitics.