What Are the Biggest Risks of the SpaceX IPO?

Market participants face significant volatility, driven by shifting liquidity and the performance of high-profile IPOs like SpaceX, which often signal late-cycle euphoria. While valuation remains a poor timing mechanism, tightening Federal Reserve policy and reduced bank lending could trigger a major market reversal. Corporate earnings growth, currently bolstered by sustained government deficits and reduced consumer savings, remains elevated but faces long-term sustainability challenges as companies gain wage leverage over workers. Investors should prioritize diversification, favoring stable utilities like Southern Company over high-risk, volatile miners like Sibanye Stillwater or First Majestic Silver. Furthermore, the shift in capital expenditure by major hyperscalers remains a critical indicator for the future performance of the S&P 500, necessitating a cautious approach to large-cap domestic equities in favor of small and mid-cap opportunities.