Markets were mixed last week as geopolitical tensions and Federal Reserve expectations shaped investor sentiment. Despite ongoing unrest between Israel and Iran, the broader oil market remains relatively stable with no significant supply disruptions expected, as Iran's oil exports are marginal and replaceable. The Federal Reserve’s upcoming meeting is in focus, particularly their revised inflation forecasts and projections for potential rate cuts. Meanwhile, U.S. housing continues to struggle under the pressure of ongoing quantitative tightening, with home prices reportedly down 5–10% nationally. Investors should also keep an eye on G7 developments and the possibility of favorable trade announcements.

On the equity front, PVG Asset Management has reduced overall market exposure, trimming positions in advance of seasonally weak months like August and September, and to allow for tax loss harvesting. The firm is eyeing energy stocks closely, particularly in the event of new sanctions on Russian oil. Defensive sectors underperformed, contrary to expectations, while select opportunities remain in consumer cyclicals, financials, and healthcare. Notable individual names on PVG’s watchlist include AVXL, GAP, SHAK, and financials like C and WFC. In technology, rotation into lagging names has prompted profit-taking, with positions like MU and QCOM recently exited. Overall, selectivity and cautious positioning are emphasized as valuations hover near historical resistance levels.

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