Market Impact of Potential Fed Turmoil - The market has become conditioned to noise from the administration regarding policy makers [2][3] - The market may initially take potential Fed turmoil in stride, viewing it as a continuation of a dovish Fed policy and anticipating future rate cuts [3][4] - Equity market is expected to react positively to potential aggressive rate cut strategy, craving more stimulus [6] - Bond market is expected to become more stressed, with risk premium potentially creeping higher [7][8] Potential Risks and Concerns - S&P Global warned that the US credit rating could come under pressure if political developments weigh on the strength of American institutions [9] - Turmoil alone is not expected to drive a downgrade, but a more pervasive approach could be a contributing factor [11] - Deficits, debt levels, and the steepening yield curve are greater concerns than the potential Fed turmoil [12] Investment Strategies - Technology sector is considered a safe trade due to the AI race [13] - Opportunities exist in the industrials and financials sectors [14] - Focus is shifting towards size and earning stability in the back half of the year due to increasing volatility [15]