July is off to an interesting start.

• The S&P 500 is flat

• The Russell 2000 is up

• The Nasdaq 100 is down

There tends to be a lot of rebalancing at the start of each quarter, and that seems to be what we’re seeing today.

The tension between Musk and Trump is also picking up, which usually isn’t great for riskier assets. Trade deal deadlines are getting closer too.

Markets have rallied hard off the lows, so a pullback is long overdue. It’s a good time to be a bit more cautious.

That doesn’t mean it’s time to be bearish.

But if you’re holding high-growth or momentum stocks, make sure you can handle the volatility.