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As investors brace for volatility (^VIX) in late 2024 and ahead of the presidential election, Fundstrat Global Advisors managing director and global head of technical strategy Mark Newton joins Market Domination to share his market insights and broader outlook (^DJI, ^IXIC, ^GSPC).

After the unwinding Japanese yen carry trade triggered a broader market sell-off this summer, Newton explains that the yen has regained some strength.

"The positioning in the yen has actually grown a lot more bullish in recent months, and it's gone from really one of the most negative levels on record," he explains, while not expecting any more volatility to come from the unwind of the carry trade this year.

Newton says that volatility is "a source of major discomfort... for everybody across all asset classes." However, he believes that the market is nearing a time where "bad news is no longer going to mean good news for stocks." He explains that the economy has weakened and bond yields (^TYX, ^TNX, ^FVX) have pulled back sharply: "My thinking is yields and the dollar are close to a short-term floor, which means further deterioration in economic data likely would be more of a negative than a positive for stocks."

Newton reiterates that September is a historically tough month for markets and encourages investors to do their research before taking up new positions as the Federal Reserve begins its interest rate cutting cycle.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl